The latest report from ARLA Propertymark has revealed that the UK continues to suffer from a shortage of stock within the Private Rented Sector (PRS), resulting in rents rapidly increasing.
The report - which focused on activity in the PRS during the month of August - revealed that the country still has a significant shortage of rental accommodation that is failing to meet the ever-growing demand from prospective tenants. Although the average number of properties registered per branch had risen from 184 to 197 between July and August, letting agents also saw the number of prospective tenants registering their interest from 73 to 76 in August - adding further pressure to the rental supply in the UK.
These findings were also supported by a report published by the letting agency Bunk, who found that rental demand for investment properties were up by six per cent in the last quarter.
Increased rents are a natural occurrence when there is a lack of supply in the PRS sector and this was certainly the case for tenants in the UK. A staggering 64% of agents witnessed landlords increasing rents - The highest increase in the month of August ever recorded by ARLA Propertymark and a 35% year-on-year increase since 2017. The regions that were most affected by rent increases were in Yorkshire and the Humber and the West Midlands, with 80% of tenants seeing an increase in their rents.
Speaking of the results, the chief executive of ARLA Propertymark, David Cox said: “Although it’s positive to see that supply has risen, it is nowhere near enough to counterbalance the rapid pace of rising rents, which have reached a new record high for the fourth month running. Two thirds of agents reported landlords raising rents last month, which is a significant increase when compared with the two fifths of agents who witnessed rises in August last year.”
As Tom Woollard, co-founder of Bunk said, the private rented sector is currently the backbone of the UK property market. Not only has renting become a solution for those who can’t afford to purchase a property of their own, but it has also become a lifestyle choice and permanent living solution for many. With rents on the rise and the PRS continuing to suffer with a shortage of stock, now is the ideal time to invest in the UK private rented sector.
Are you looking for your next investment? Click here to find out about our latest investment opportunities!