In August two in five (40%) tenants experienced a rent hike – up from 31% in July, ARLA Propertymark’s August PRS report has found.
Demand from prospective tenants fell however, as the number of house-hunters registered per branch dropped by 19% in August to 64 on average, compared to 79 in July.
David Cox, chief executive of ARLA Propertymark, said: “As we’ve highlighted before, the impact of recent and ongoing tax changes continues to have a material impact on the buy-to-let market. Four in ten tenants saw their rents rise in August – the highest level we’ve seen since records began.
“Although it’s encouraging to see the number of properties available to rent rising, supply still isn’t anywhere near high enough to slow down the pace of rent rises.
“We need more homes to rent, and for government to change its narrative and recognise the very valid role buy-to-let plays in the housing mix. Driving small landlords out of the market ultimately impacts tenants most.”
The supply of available properties rose to 197 in August, from 184 last month.