It’s been revealed that the number of tenants experiencing rent hikes reached a 10 month high in June this year. The amount of tenants seeing rent hikes increased to 35 per cent, up from May’s figure of 28 per cent. This is the highest level of rent increases since August 2017, which saw the same 35 per cent level. The rate has more than doubled for the same month last year, which experienced a rate of 13 per cent. This marks the continuation of an upward trend that has seen the amount of landlords who are increasing their rents rise each month since last November.
The worst affected tenants were based in the southwest, where 48 per cent of renters experienced a rent rise. Comparably, only 8 per cent of tenants in London saw a rent increase. On average, tenants stayed in their private rented properties for 19 months, with the void time between tenancies decreasing to three weeks. The supply of rental homes has also increased to the highest level in 2018 so far, as demand from potential tenants rose by 18 per cent. In May, the number of potential tenants registering in branch dropped significantly, to 60 per branch. This was a 16 per cent dip from April, which was the lowest demand in rental property since December 2017, which saw 59 potential tenants per branch.
The number of tenants searching for private rented sector properties is encouraging, but not enough to slow the pace of rent hikes, which continue to climb. June also saw a decrease in the amount of landlords leaving the rental market. The number of landlords selling their buy-to-let properties dipped to four at each branch. The amount of private rented properties managed by letting agents also rose in June, to an average per branch of 191. This is the highest number recorded for this year so far, and is a 3 per cent rise from the previous month. The highest supply of rental properties is in the North East, where on average, each branch managed 225 homes. The lowest supply was found in Northern Ireland, where an average of 75 properties were managed in each branch.
During the past few years, taxes to both let and purchase a property have increased. This, coupled with continual regulation changes, has begun pushing landlords away from the market. It was predicted that 2018 would be a tough time for renters, as the Government continues to punish the market. These fears have now been realised, and tenants are continuing to suffer as a result.
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