East Midlands highest region for tenant demand as Wales records lowest rental stock

ARLA Propertymark issues November Private Rented Sector (PRS) report, showing East Midlands highest region for tenant demand as Wales records lowest rental stock.

Key points from report:
  • The East Midlands had the highest number of new tenants registered per branch for November, with an average of 134.
  • The average number of new prospective tenants in November was the highest on record for the month of November, at 82 per branch.
  • Rental stock was the lowest in Wales with an average of 106 properties managed per branch.
  • Number of tenants experiencing rent increases was 58%, the lowest rate since February
Demand from tenants:
  • The average number of new prospective tenants registered per branch rose in November to 82, up from October’s figure of 71.
  • Regionally, the East Midlands had the highest number of new tenants registered per branch with an average of 134. This number was lowest in Wales where there was only an average of 26 new prospective tenants registered in November.
Rent prices:
  • The number of tenants experiencing rent increases fell for a third month in November, as 58 per cent of agents saw landlords increasing rents compared to 68 per cent in October.
  • This is the lowest rate increase since February, where rent increases stood at 49 per cent.
Supply of rental stock:
  • The number of properties managed per letting agent branch increased from 196 in October to 212 in November.
  • Year-on-year this is slightly lower than during October last year when the figure stood at 214.
  • Regionally, Scotland had the highest number of properties managed per letting agent branch with a figure of 304. However, rental stock was the lowest in Wales with an average of 106 properties managed per branch.
Rent Reductions:
  • The number of tenants successfully negotiating rent reductions increased from 0.8 per cent in October to 0.9% in November.
  • This is the lowest number recorded in the month of November since records began.
Propertymark’s CEO, Nathan Emerson, comments:

“Our latest PRS survey has shown a rebound in tenant demand following two consecutive months of decline. Many landlords are aware of how difficult this year has been for tenants and as a result we are seeing rent increases fall for the second month in a row. 

“The Private Rental Sector – which makes up a significant amount of the UK housing stock – is facing the reality that many landlords are increasingly considering an exit from the market. A key focus for the Government in the New Year needs to be how to incentivise more landlords to remain in the sector and attract new interest in the market.

“However, looking towards the sector’s immediate challenge as the pandemic rears its head once again, the unfortunate reality is that we may see an increase in the number of renters falling into arrears. It is therefore vital that vulnerable tenants are adequately supported during this time.”

 

Kindly shared by ARLA Propertymark

Main photo courtesy of Pixabay