The number of available properties to let in the private rented sector (PRS) has increased in July 2015, the latest figures from the Association of Residential Letting Agents (ARLA) show.
ARLA members handled 189 rental properties per branch in July, compared to 178 per branch in the previous month, according to ARLA’s monthly PRS report.
On the other hand, demand from tenants declined somewhat in July – to an average of 35 customers looking to a new let per ARLA branch, against 36 customers per branch in June.
Supply of new properties seen growing
Over a third of ARLA agents (35 per cent) expect the supply of rental properties to continue increasing over the next five years.
The East of England is most optimistic, with over half of agents in the region (53 per cent) upbeat about future supply.
However, only 15 per cent in the South West and 16 per cent in Yorkshire and Humberside predict continuing growth of housing stock for tenants.
Rise in rent costs
Letting agents are continuing to see increases in the cost of renting for tenants, with two in five agents (37 per cent) reporting rents had increased between June and July; the highest number since tracking began in January, when levels were at 27 per cent.
The report also found tenants in the West Midlands have been affected by rent increases the most, with over three fifths (64 per cent) of agents reporting rents had increased in July shortly followed by the East of England where 53 per cent of agents witnessed rent increases. In comparison, only 21 per cent of tenants in the North West experienced a rise.
David Cox, managing director of ARLA comments:
“To finally see a rise in available rental properties is definitely a step in the right direction; although with demand remaining the same, we still have a long way to go in achieving a balanced and stable private rented sector. Following the changes to pensions made in April, the fact that a third of agents are predicting supply will continue to increase over the next five years could be a result of people releasing equity from their pensions to invest in the buy-to-let market.
“It is clear from this month’s findings that the growing gap between supply and demand is an issue still rife in the capital; which does not look to be improving any time soon. With the cost of renting continuing to rise month by month, it’s a worrying state of affairs for those hoping to save for their first house and just pushing the aspiration of owning a home further out of reach.”
