Heat easing in rental market - but still a record month

The latest rental market snapshot released by ARLA Propertymark shows a little of the heat coming out of the rental market - but it’s still breaking records.

In its data for June - the latest available - ARLA says the average number of new prospective tenants registered per branch fell to 88, from May’s figure of 97.

Year-on-year this is the highest figure on record for the month of June, with the previous June high being 79 prospective tenants registered per branch last year.

Regionally, the West Midlands had the highest number of new tenants registered per branch with an average of 128. This number was lowest in Scotland where there was only an average of 34 new prospective tenants registered in June.

Meanwhile the number of tenants experiencing rent increases jumped down in June, as 60 per cent of agents saw landlords increasing rents compared to 68 per cent in May. Year-on-year this figure is more than double that during June last year, and the highest  figure on record for the month of June.

In supply terms, the number of properties managed per letting agent branch fell from 203 in May to 184 in June.

Year-on-year this is slightly less than during June last year when the figure stood at 200.

Regionally, Yorkshire & Humberside had the highest number of properties managed per letting agent branch with a figure of 288. However, rental stock was the lowest in London with an average of just 112 properties managed per branch.

And the number of tenants successfully negotiating rent reductions fell from 0.9 per cent in May to 0.7 per cent in June. This is the lowest number recorded during the month of June since records began.

Mark Hayward - Propertymark’s chief policy advisor - says: “It is brilliant to see rent continuing to flow this month with rent reductions at a record low for the month of June, showcasing the continuation of the current booming rental sector. 

“We have a close eye on the overall sector for the rest of the year as the current strength of the sales market may be off-putting to private rental investors, and any potential impending taxation on property will be a consideration for all landlord types, but overall, it remains fantastic to see new potential tenancies at a monthly high for June.”