You are here: Home - Mortgages - Buy To Let - News -

Rent increases hit lowest ever levels

0
Written by: Shekina Tuahene
29/06/2020
The number of agents reporting rent increases dropped to 14% in May, the lowest level recorded by the ARLA Propertymark Private Rented Sector (PRS) report.

ARLA said this was because many landlords had chosen not to increase rent due to financial difficulties faced by tenants during the coronavirus pandemic. 

This is down from the 41% of agents who said they were noticing rent increases in February, the last time ARLA conducted its PRS report and before the lockdown began. 

The year-on-year difference is also stark, as in May 2019, 45% of agents reported rises in rent. 

Furthermore, tenants have been more successful in asking for rental reductions with the number of tenants negotiating reductions increasing to 2.5% in May – the highest since March 2019 when the success rate was 2.9%.  

Tenant demand 

As landlords were unable to conduct viewings during the lockdown, the average time properties were empty between tenancies increased to five weeks in May.  

This is the longest time properties have remained void between tenancies since records began.  

The number of new prospective tenants fell to 70 per branch in May, compared to 82 in February.

However, the level of pent-up demand during lockdown meant that despite the fall, this is still the highest level on record for the month of May since records began, compared with 60 new tenants registered in May 2018, and 69 in May 2019. 

Rental stock supply 

Following the reopening of the housing market, the number of properties managed per branch rose to 208 in May. This is an increase from pre-lockdown when the average number of properties managed per member branch stood at 201. This figure is the same year-on-year.  

David Cox, ARLA Propertymark chief executive, said: “Our latest figures show that landlords and agents have been taking the brunt of the pandemic. They are aware of the financial difficulties facing tenants and have shown empathy, with many landlords not increasing rents where they otherwise might have needed to.  

As we continue to move forward, it’s important that everyone aims to keep the rent flowing in order to sustain the market and help boost the economy following several months of uncertainty.”  

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Wirecard ‘making good progress’ to resolve issues, regulator says

The City watchdog said Wirecard is making good progress to meet conditions it set after it ordered the payment processor...

Close