The number of people searching for a home is increasing at a faster than the available supply of rental properties, suggesting rents could go up, new figures show.
According to the Association of Residential Letting Agents Propertymark , in January there were 34 prospective tenants registered per member branch, up 31% from December.
However, the supply of rental stock only increased slightly in January.
The number of rental properties letting agents managed increased by 3% from 188 properties in December to 193 per branch in January.
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.”
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