Tenant demand is officially highest on record, say letting agents

The scale of demand in the private rental sector is now the highest on record according to ARLA Propertymark. 

The average number of new prospective tenants registered per branch increased in July to 102, from June’s figure of 88. This is the highest figure ever recorded, breaking August 2020’s previous record of 101 tenants registered per branch.

Regionally, the North West had the highest figure with an average of 166. This number was lowest in the East of England where there were just 51 new prospective tenants registered in July.

The number of tenants experiencing rent increases jumped in July, as 71 per cent of agents saw landlords increasing rents compared to 60 per cent in June. 

This is also the highest rate increase on record, beating the 68 per cent increase in May this year. It also far surpasses July last year when rate increases stood at 39 per cent.

The number of properties managed per letting agent branch increased from 184 in June to 204 in July. Year-on-year this is slightly less than during July last year when the figure stood at 208.

Regionally Scotland had the highest number of properties managed per letting agent branch with a figure of 259. 

Rental stock was the lowest in London for the second month running, with an average of just 134 properties managed per branch.

The number of tenants successfully negotiating rent reductions increased from 0.7 per cent in June to 1.1 per cent in July. This is the lowest number recorded during the month of July since records began.

Propertymark’s chief executive Nathan Emerson says: “It’s clear that as we are coming out of the pandemic, many renters that have been sitting tight are now looking to move, with the number of prospective tenants at an all-time high, and stock increasing in line with this. 

“Buoyed by the certainty of the market at present, we are also seeing a significant number of landlords increasing rents.  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 promising to see the rent continuing to flow.”