The Buy2Let Shop has discovered that the supply of private rented properties in the UK continues to rise, according to recent reports. Rental prices are also on the up, despite a slight fall in demand.
According to the latest monthly report from the Association of Residential Letting Agents (ARLA), the average properties managed per branch in July 2015 was 189, compared with 178 the previous month. 35% of ARLA agents believe that the UK’s supply of private rented property will continue over the next five years, with 53% of agents in the East of England expecting an increase.
During the same period, there was a slight dip in demand for private rented property in the UK. The statistics indicated there were 36 prospective tenants registered per ARLA branch in June 2015, but only 35 the next month. London, however, has seen a continued rise in demand, averaging 40 registered tenants per branch in July 2015 – up from 36 in the previous month.
Rent costs are also on the up, according to the report, with 37% rising – the highest rise since the report began at the start of this year. The West Midlands is seeing the highest rise in rental prices, with 64% of agents reporting an increase, whilst the East of England reported a rise of 53%. In contrast, only 21% of the North West has seen a recent rise. This follows the news that the number of buy-to-let mortgages increased in June.
David Cox, ARLA Managing Director, explained in the report: “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.”
Buy2Let Shop are the UKs leading estate agent for investment grade property and along with our sister company “The Buy2Live Shop” we offer professional and friendly services to vendors looking to sell their home to investors looking to build their portfolio.
Through our national advertising campaigns and huge network of contacts, we connect buyers with sellers and unlike most high street estate agents, we not only have a large number of listed buyers looking for find their dream home, we also have a database of retained investors, with proof of funds and finance in place.