Increase in supply of rental housing
In their monthly private rented sector report for July the Association of Residential Letting Agents noted an increase in the supply of rental housing, however the demand dipped. A third of ARLA agents expect supply to continue to increase over the next five years, rent increases last month were seen by two fifths of letting agents.
Some form of balance is now being seen between supply and demand in the rental sector, demand across the UK has decreased slightly this month, with an average 35 prospective tenants registered per ARLA branch in July, compared to 36 in June. However, demand in London has continued to rise, with 40 prospective tenants registered per branch in July, compared to 36 per branch last month.
According to ARLA 35% of their agents expect the supply of rental properties to continue increasing over the next five years. The East of England is most optimistic, with over half of agents in the region (53%) predicting supply will continue to rise. However, only 15 per cent in the south West and 16 per cent in Yorkshire and Humberside predict continuing growth of housing stock for tenants.
The good news is that a third of ARLA agents (35%) expect the supply of rental properties to continue increasing over the next five years. The East of England is most optimistic, with over half of agents in the region (53%) predicting supply will continue to rise. However, only 15 per cent in the south West and 16 per cent in Yorkshire and Humberside predict continuing growth of housing stock for tenants.
David Cox, managing directorof ARLA says: “To finally see a rise in available rental properties is definitely a step in the right direction; although with demand remaining the same, we still have a long way to go in achieving a balanced and stable private rented sector. Following the changes to pensions made in April, the fact that a third of agents are predicting supply will continue to increase over the next five years could be a result of people releasing equity from their pensions to invest in the buy-to-let market.
“It’s clear from this month’s findings that the growing gap between supply and demand is an issue still rife in the capital; which doesn’t look to be improving any time soon. With the cost of renting continuing to rise month by month, it’s a worrying state of affairs for those hoping to save for their first house and just pushing the aspiration of owning a home further out of reach.”
The July report in full can be seen on the ARLA website. http://www.arla.co.uk/info-guides/monthly-arla-private-rented-sector-report/
You May Also Enjoy
Weekly News Roundup – 19/04/24
Breaking Property News – 18/04/24
Breaking Property News – 17/04/24
Rightmove’s weekly mortgage tracker
Rightmove comment on inflation reducing to 3.2%
