Tenant demand and rental supply the ‘highest on record’ for June

The number of new prospective renters and supply of rental stock reached an all-time high in June, ARLA Propertymark’s June PRS report has revealed.

The average branch registered 79 new tenants per branch, compared to 70 on average in May. This is the highest recorded year-on-year figure for the month of June, with a previous record of 71 in June 2019. However, this is still down on pre-lockdown figures when there was an average of 82 prospective tenants registered per branch in February.

Similarly, the number of rental properties on the market continued to pick up, with the number of properties managed per branch reaching 200, an all-time high for the month of June.

While this is a slight decline from 208 in May, it sets the market up for an active summer compared to the typical seasonal lull.

Regionally, Yorkshire & Humberside saw the highest number of properties managed, with an average of 264 per branch, and Wales had the lowest number of properties on their books, with an average of 104 per branch.

The number of tenants experiencing rent rises increased in June, with 29% of agents seeing landlords increasing rent compared to just 14% in May. However, this is still the lowest number of rent increases for the month of June since 2016.

What’s more, the average time properties were empty between tenancies dropped from five weeks in May to four weeks in June. This is the longest period on record properties have remained void between tenancies for the month of June, with a previously consistent figure of three weeks.

Phil Keddie, president of ARLA Propertymark, says the record-breaking supply of rental stock and demand from tenants during this time of year ‘paints an optimistic picture’ for the summer months.

He comments: “As the market continues to recover from the pandemic, it’s essential that everyone continues to keep up with their rent in order to sustain the market and help boost the economy during these uncertain times.”