Latest PRS (Private Rented Sector) Report
As most of our leaseholders are involved in subletting their properties, please see below for the latest PRS update with stock and market movements as reported in the UK rental market, as provided by ARLA
London Rent Hikes Start to Slow
- Rental costs in London are increasing at a much slower rate than the rest of the country
- Nationally, the supply of rental stock decreased in February while demand stayed the same
- Rent increases have slowed in the Capital. Only eight per cent of agents based in London said rents went up in February, compared to the national average of 25 per cent2
- A quarter (25 per cent) of London-based agents saw rents decrease last month, compared to just one in ten (10 per cent) nationally.
Supply of rental stock
- Nationally, the number of properties letting agents managed per branch decreased by five per cent last month
- In January, the number of properties managed per branch increased to a high of 193, but this figure went back down to 183 per branch last month
- This is a four per cent increase from February 2016, when there were 176 properties managed per branch, indicating stock is rising overall.
Demand for rental properties
- In February, there were 34 prospective tenants registered per member branch – this is the same number as January, but down year on year with 37 registered in February 2016 and 40 in February 2015.
David Cox, ARLA Propertymark Chief Executive, said: “The fact that rent prices in London are bucking the national trend is a positive sign for both renters and prospective renters in the Capital. However, this isn’t being seen across the rest of the country, as the national average for the number of agents reporting rent hikes rings alarm bells. While London’s results indicate a step in the right direction, it must be taken with a pinch of salt. With the imminent withdrawal of mortgage interest relief and the Government’s decision to ban letting agent fees will more than likely have the opposite effect on rental costs across the country if an out-right ban is imposed. The costs of the services provided by letting agents will need to be recouped and will inevitably be passed onto renters through increased rent.”
The full report can be read HERE!
Do You Need Lettings Advice?
Evolve Block & Estate Management works very closely with the regions Martin & Co lettings and sales agencies and with our senior property manager being a member of ARLA, if you need any help or advice on a current tenancy, rental values or other advice about subletting or tenancies Contact Us and we’ll put you in touch with the nearest office!