Rental supply drops in May
In May there were 179 properties managed by ARLA agents, the lowest number recorded in 2015, while during the same period more than a third (34%) of agents reported rent increases.
Things look worse in London, where there were just 134 properties managed per branch compared to 273 in Scotland.
David Cox, managing director of Association of Residential Letting Agents, said: “It is worrying to see that there such a sharp decrease in supply, when we know there is already a struggle to meet housing needs.
“The months following any major event such as the general election will always cause uncertainty and shake things up for the property market, but one thing is for sure – the dwindling supply and already-high demand is an issue that’s going to continue to plague the property market.
“We are in desperate need of more housing stock in this country and supply and demand isn’t something that will level out overnight. It’s vital that the new government follows their promise of building more houses, so we can free up rental properties and head on the right path to turning the property market around once and for all.”
Tenants in the South West were hit hardest by rent increases as half (49%) of ARLA agents reported rising rents.
Nationally three quarters (76%) of agents expect rents to continue rising over the next five years.