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.”