The latest report from the Association of Residential Letting Agents (ARLA) indicates that demand for would-be tenants increased during August.
There were 37 prospective tenants registered per ARLA branch during August, the highest number since June.
Ups and downs
Data from the report shows that in the first half of 2016, there were signs that demand was dropping, with month-on-month figures down on the same periods in 2015.
However, the last three months has seen a rise in annual demand.
In August, the number of rental properties available by member branch stood at 183. This was one lower than in July. Year-on-year, supply increased by 3%, with August 2015 seeing an average of 178 properties per branch.
Rising rents
Tenants negotiating rent reductions actually increased during August to the highest levels seen since records began at the beginning of last year. Members of ARLA said that around 3% of tenants got a rent reduction last month, in comparison to 2.1% in July.
Last month, 51% of ARLA members reported some signs of uncertainty from those looking to rent, or looking to let, following the Brexit vote.
This however seems to have had little impact on the rental market. During the last month, there were no reported changes in rent prices, supply of properties or demand.
Demand for rental property remains high
Good shape
David Cox, Managing Director at the Association of Residential Letting Agents, noted: ‘Although Brexit painted a temporary picture of uncertainty for tenants and landlords, our findings show that the market remains in good shape. We’re not seeing anything across supply or demand that is out of the ordinary, and while demand is at high levels, this is being matched with a decent volume of properties on the rental market.’[1]
‘What’s good is that more tenants are managing to successfully negotiate rent reductions, and that agents and landlords seem to be responding well to this. The rising cost of renting, especially in major cities such as London, is an ongoing issue in both the buying and lettings market so it’s promising to see small steps towards better affordability for renters,’ Cox added.[1]
[1] http://www.propertyreporter.co.uk/landlords/rental-demand-remains-high-according-to-arla.html