Letting agents predict price rises following a fall in rental supply!
The supply of rental properties fell by 3.7% during October when compared to the previous month according to fresh data from the Association of Residential Letting Agents (ARLA Propertymark).
ARLA Propertymark’s latest report on the Private Rental Sector reveals that the average letting agency branch managed 182 properties in October, down from 189 in September.
This number is the lowest figure that has so far been recorded in 2017. The figure has not been so low since October 2016 where the average number of properties managed stood at 180 on average.
Demand for rental homes also dropped to 69 prospective tenants registered per branch, down from 79 a month earlier.
The number of tenants experiencing rent increases fell to its lowest level since December 2016 with just over a fifth (22%) of agents witnessing landlords hiking rent costs, down from 27% in September and a high of 35% in August.
The fall in supply is leading letting agents to predict a price rises.
The news follows rental price growth slowing with the average rent in England and Wales hitting £845 a month in October, up 2.4% year-on-year but down from 4.8% witnessed in October 2016, according to the latest Your Move buy-to-let-index.
Rents in the East of England, which contain many rural areas, commuter towns and major cities including Cambridge and Norwich has outstripped all other regions rising by 6% over the past 12 months. The average rent in the region now stands at £887 per calendar month.
Other areas showing strong price increases were in the North West where rents grew by 3.1% to reach £633 and the East Midlands, which saw 3.2% year-on-year growth to reach an average of £648pcm.
London was one of two areas to see prices fall year-on-year, as the focus of the rental market continues to shift away from the capital and the South East.
The other region to see a decline was the North East which still remains the cheapest place to rent a property, with the average residential property costing £535pcm while London continues being the most expensive at £1,267pcm in October.
However, buy-to-let investors in the North East of England continue to enjoy the highest return at an average of 5.1%.
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