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Property News > More tenants experiencing rent rises in UK private rented sector
More tenants experiencing rent rises in UK private rented sector
The UK’s private rented sector saw a drop in the number of tenants looking for new homes in May, but many tenants experienced rent increases, new research shows.The data, presented by the Association of Residential Letting Agents (ARLA), also shows that the number of rental properties managed by letting agents in the UK’s private sector reached a 2018 peak of 4% in May. ARLA members currently manage an average of 186 homes, increasing from the 179 recorded in April. The data also shows that the number of landlords in the private rented sector remains at an average of five per branch, unchanged month on month. May also saw 28% of tenants experience rent hikes, the highest percentage since August 2017, when 35% of landlords opted to increase their tenant’s rent. Meanwhile, demand from prospective tenants fell by 16% between April and May, with an average of 60 per branch now registered, meaning demand is currently at its lowest level since December 2017.‘There’s a chronic supply shortage in the rental market at the moment, and while it’s positive that the number of properties available to rent seems to be rising but it isn’t nearly enough to fix the market for tenants. Competition is getting more and more fierce, and with legislative changes hitting landlords from all sides, the cost of renting is only increasing,’ said David Cox, ARLA chief executive.‘The Government’s recent announcement around licensing changes for landlords is a prime example. Licensing doesn’t work and it never has done. It means councils will spend time and energy administering schemes, rather than concentrating on increasing housing stock in their areas and enforcing against rogue, criminal landlords,’ he claimed.‘Coupled with the gradual removal of mortgage interest relief, new energy standards for landlords and the ever increasing fees for these schemes, landlords are being expected to bear more and more costs which is probably why the number of landlords leaving the market has remained at the all-time high we saw last month,’ he pointed out.‘We’re all striving for the same end goal of improving the private rental sector for consumers, but the only thing which will truly create a better, fairer market, is a dramatic increase in supply,’ he added.