View more on these topics

Landlords and tenants face “lose-lose” situation: Arla Propertymark

Arla Propertymark’s private rented sector’s report shows a rise in tenants enjoying rent reductions alongside an increase in supply. However, the association warns that costs for both landlords and tenants could soon rise.

In terms of statistics, the report shows that tenants who managed to negotiate a rent reduction stood at 3.7 per cent in October, a significant rise from the 2 per cent figure seen in September – and the highest since January 2015.

Meanwhile, 24 per cent of agents said that landlords had upped rent prices, down from 31 per cent in September.

In terms of supply and demand, letting agents said that the average number of properties available per branch was 198 in October, up from 194 last month, and represents a 9 per cent rise measured on an annual basis.

However, demand also rose, with the average number of those looking for a house per branch at 71 in October compared to 63 in the previous month.

Arla Propertymark chief executive David Cox says: “Last month’s findings indicate that power in the rental market could be shifting towards tenants, with a record number negotiating rent reductions, and less landlords hiking rent costs. However, it’s more likely that this is indicative of the time of year and come the New Year, we’ll see rent prices starting to creep up again.

“There’s no real way of avoiding it unfortunately – with landlords facing continued regulatory change, increasing costs will be passed on to tenants. Those who don’t pass the costs on will eventually have to exit the market, which will increase competition and boost prices. It’s the ultimate ‘lose, lose’ situation.”



Rental demand highest this year but supply down: ARLA

ARLA Propertymark has released its Private Rented Sector report for July, which shows that tenant demand has increased 13 per cent annually, while rental supply has fallen 4 per cent within the same time frame. This amounts to 79 prospective tenants per letting agent (the highest level yet in 2018, and the highest since September […]


Rent hike expected in 2017: ARLA

Following the Autumn Statement announcement that letting agents will be banned from charging fees to tenants, 80 per cent of agents expect rent hikes next year. A report from the Association of Rental Letting Agents found that in November, the number of tenants experiencing rent increases decreased to 16 per cent, a fall from 18 […]

India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.


News and expert analysis straight to your inbox

Sign up