During May, there was a rise in the number of tenants in the Private Rented Sector who were experiencing a rent increase, compared with the previous months at a period when the supply of rented properties on offer was rising.
Generally, the number of tenants witnessing rent increases climbed to 28% in May, up from 26% in April, data released as part of ARLA PropertyMark’s recent monthly Private Rented Sector Report has revealed.
Since August in 2017, this is the highest level when 35% of landlords decided to raise rent prices for tenants.
Meanwhile, the amount of rental properties managed by letting agents rose by 4% in May, with 186 on average per branch.
David Cox, ARLA Propertymark chief executive, commented: “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, this is just a drop in the ocean; 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.
“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.
“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 landlord leaving the market has remained at the all-time high we saw last month.
“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.”