Rental demand hits another all-time high

Rental demand has surpassed its previous record high in August, while stocks remain low, according to the latest Propertymark report.

Demand from tenants 

The average number of new prospective tenants registered per branch jumped in August to 107, from July’s figure of 102.

This is the highest figure ever recorded for the second month running and surpasses last month’s previous record, when the number of prospective tenants registered per branch was 102.

Prior to this the all-time record was during August 2020 when the figure stood at 101.

Rent prices

The number of tenants experiencing rent increases jumped significantly for the second month in a row in August, as 79 per cent of agents saw landlords increasing rents compared to 71 per cent in July.

This is the highest rate increase on record, beating the previous record of 68 per cent in May this year for a second month running.

Supply of rental stock

The number of properties managed per letting agent branch decreased from 204 in July to 196 in August.

This remains in line with the previous month’s figure of 184 during June this year. Year-on-year this is slightly less than during August 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 251. However, rental stock was the lowest in London with an average of just 126  properties managed per branch.

Rent Reductions

The number of tenants successfully negotiating rent reductions Decreased from 1.1 per cent in July to 0.4 per cent in August.

This is the lowest number recorded during the month of August since records began.

Propertymark’s CEO Nathan Emerson said: “The continued increase in demand from tenants, coupled with the decreasing amount of rental stock available  means we are seeing a worrying increase in rent prices for the second month running. The private rented sector provides homes for approx. 5m UK households and it is vital the service being provided by landlords is recognised. With the increasing pressure, more landlords need to be incentivised into the sector.

“We look forward to meeting the newly appointed Secretary of State and his team over the coming months to ensure keeping the rent flowing is high on the Department’s agenda going forward, and we have a close eye on the overall sector for the rest of the year as the growing concerns over house buyers jumping ship from the buying and selling market is bound to put extra pressure on the private rental sector.”