Demand for rental accommodation spiked 10 percent year-on-year in January, partially offset by an increased supply of rental stock.
The results were part of ARLA Propertymark’s January report on the rental sector, and found that there were 34 prospective tenants registered per member branch. This represents a 31 per cent rise from December, when there was a ‘seasonal lull’ and just 26 prospective tenants at each branch.
The results of the survey suggest that in the previous 12 months, demand for rental accommodation has risen by 10 per cent.
However, the demand was partially offset by an increase in the number of rental properties letting agents managed in January. In December there were 188 properties managed per branch, whereas in January there were three per cent more with 193 per branch.
In line with the trend of the previous months, rent prices also rose in January. 23 per cent of agents saw tenants experiencing rent hikes in January, which was actually down year-on-year; 30 per cent of agents witnessed rent increases in January 2016.
David Cox, ARLA Propertymark Chief Executive, said:
“As expected, the New Year brought with it a flurry of activity in the rental market. While supply of rental stock rose slightly, the number of prospective tenants increased by a much bigger margin. When supply and demand are out of kilter, as they have been for so long now, the market isn’t balanced and fair for tenants, and rent prices will just continue to rise.
“Worse still, should the Government decide to implement an out-right ban on letting agent fees when the consultation takes place, the situation will likely get worse for tenants. The costs of the vital services letting agent fees cover will need to be recouped, and this will get passed on to renters in inflated rental prices. This, combined with new landlords’ tax, particularly the upcoming changes to mortgage interest release, means the rental market is far from reaching equilibrium.”