According to the latest report from the Association of Residential Letting Agents, demand from prospective tenants rose during August, with 37 prospective tenants registered on average per branch – the highest number since June 2016, when there were also an average 37 tenants per branch.
The report noted that during the first half of this year, there were signs that demand was cooling off, as each month figures were down year on year from 2015, however over the last three months, demand has been up year on year.
Supply of rental stock available
The number of rental properties on letting agents’ books stood at 183 in August, down marginally from July when there were an average of 184 properties managed per branch. Year on year supply was up by 3%; last August, agents managed 178 properties on average.
The number of tenants negotiating rent reductions rose in August to the highest levels seen since records began at the start of last year. ARLA members reported that 3% of tenants secured a rent reduction last month, compared to 2.1% in July.
In August just over half of members (51%) reported some signs of uncertainty from either those looking to rent or those looking to let a property following Brexit
However, this has had very little real impact on the rental market; in August the majority of members reported no change in rent prices, supply of available properties, or demand from prospective tenants following Brexit.
David Cox, Managing Director, Association of Residential Letting Agents (ARLA), said: “Although Brexit painted a temporary picture of uncertainty for tenants and landlords, our findings show that the market remains in good shape. We’re not seeing anything across supply or demand that is out of the ordinary, and while demand is at high levels, this is being matched with a decent volume of properties on the rental market. What’s good is that more tenants are managing to successfully negotiate rent reductions, and that agents and landlords seem to be responding well to this. The rising cost of renting, especially in major cities such as London, is an ongoing issue in both the buying and lettings market so it’s promising to see small steps towards better affordability for renters.”