Rent prices rose to a new record high for the third consecutive month in July, according to ARLA Propertymark’s July Private Rented Sector (PRS) report.
The number of tenants facing rent rises increased to the highest figure on record last month, with two thirds (63%) of agents seeing landlords increasing them. This is a 15% increase from June, which was a previous record high.
Year-on-year, the number of tenants experiencing rent increases is up from 31% in July 2018.
Regarding the supply of rental stock, letting agents had an average of 184 properties under management per member branch in July – a drop from 199 in June.
Demand from tenants also increased in July, with the number of prospective tenants registered on average per branch rising to 73, compared to 70 in June.
Year-on-year, though, demand has fallen from 79 house hunters registered per branch in July 2018.
Meanwhile, the number of landlords exiting the market remained at four per branch in July, the same figure as July 2018.
“Following the Tenant Fees Act coming into force in June, rents have continued to rise, which we believed would happen,” David Cox, chief executive of ARLA Propertymark, says.
“The fees agents have been banned from charging are still being paid for by tenants, however it’s now through their rent, rather than upfront costs.”
He adds: “The fall in the number of properties available further increases competition in the market, which only pushes rents up or forces landlords to exit the market entirely. As the sector faces increased levels of legislation, it’s evident this is putting even more pressure on the industry.”