Rent rises stall in October
The number of tenants that saw their rent rise in October dropped to the lowest level seen this year, the latest Private Rental Sector Report from ARLA has found.
The number of letting agents reporting rent increases fell to a quarter (25%), compared to 32% in September.
This decrease came at the same time as a lull in demand for rental properties – a trend typical of the time of year.
David Cox, managing director, Association of Residential Letting Agents, said: “Finally, some good news this month – fewer agents reporting rent increases should bring some relief to tenants before Christmas.
“It’s definitely a step in the right direction, however a quarter of tenants are unfortunately still seeing hikes.
“Although it’s typical that demand dropped at this time of year, as there’s a seasonal lull in the run up to Christmas, we except to pick up again in January.”
And Cox said he hopes the trend for lower rents will continue into next year.
He said: “Looking ahead to next year, we’d hope to see the number of tenants experiencing rent hikes remain low with supply and demand levelling out.
“However, a lot is resting on the economic and political agenda. We’re still waiting for new houses, promised by the Prime Minister to be built.
“Whilst this will take pressure off the rental prices as supply rises, the changes to landlord tax proposed under the Finance Bill is likely to discourage new landlords from entering the market.
“Further, it’s been a waiting game all year to see if Mark Carney will raise interest rates in the New Year – this will play a big part in determining whether renters looking to buy a home will be able to afford to.
“And when interest rates do rise, the goal of homeownership will be pushed further out of reach for many and of course put further pressure on the private rental sector.”