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Written by Matthew Lane

ARLA (Association of Residential Letting Agents) recently launched its inaugural monthly Private Rented Sector Report, which aims to track important market trends within the private rented sector.
 
The January report, carried out among ARLA members, found that on average just over a quarter (27%) of ARLA licenced branches witnessed a rise in the cost of monthly rent for tenants from December 2014 to January 2015.
 
The East of England, which includes Bedford, Cambridge and Norwich, witnessed the highest number of landlords increasing rent per calendar month. Just over a third (35%) of ARLA letting agents in this region reported a rise in the New Year. By contrast, Welsh agents only saw one in ten (11%) landlords upping monthly rent, leaving fewer tenants to battle with rising costs.
 
“The new ARLA Private Rented Sector Report is designed to gain invaluable insight on the lettings market month-to-month from ARLA member agents,” David Cox, Managing Director of ARLA, said. “With house prices still high, along with stricter lending criteria for mortgages, the rental market is currently a much more accessible and affordable option to buying. Due to this, the demand for rental property is increasing and people are willing to pay more to secure their desired property. If house prices continue to rise in 2015, we expect this trend to continue in the rental sector.”
 
Even though rent costs are growing, ARLA letting agents said it takes roughly five viewings for a property to be taken off the market. Despite rent increasing the most in the East of England, it still only takes an average of three viewings for a property to be let in the region, less than half the viewings it takes for properties in London (which takes an average of seven viewings).
 
From a supply and demand perspective, ARLA Licensed agents recorded an average of 38 prospective tenants registered per branch in January. London, unsurprisingly, dominated this area, with an average 45 registered prospective tenants per branch.
 
Unlike the sales market, though, there is much better supply in the rental market, with the average number of managed rental properties per branch standing at 184. The highest number of properties was recorded in East Midlands (at an average of 266 per branch), while the lowest was recorded in London (at 140 on average per branch).
 
“London has the highest demand for rental property on average per branch, yet supply in the area is the lowest out of any UK region,” David Cox added. “Many Londoners simply cannot afford to buy and therefore look to the private rented sector instead. This means available property is highly sought after, and it highlights the issue of supply and demand; particularly in the capital but also throughout the UK.”
 

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