PRS Rents Remain Stable

Thursday, September 24, 2015
PRS Rents Remain Stable

PRS Rents Remain Stable

ARLA Report Fewer Landlords Raising PRS Rents

The Association Of Residential Letting Agents (ARLA) have reported that the number of letting agent members reporting PRS rent increases has dropped for the first time this year.

It was widely feared that many landlords would be forced to increase PRS rents in order to mitigate the abolishment of landlords mortgage interest tax relief, however, the initial knee-jerk reaction has been fairly limited as the changes are being spread over the next 5 years.

Nationally, only 33% of ARLA registered letting agents reported a 4% decrease in the number of landlords increasing PRS rents during the month of August, the lowest figure recorded since April this year.

However, these figures vary when viewed on a region by region basis

  • 42% of ARLA registered letting agents reported rent rises during August in the South West, which is 4% higher than in July.
  • 36% of landlords increased PRS rent in Wales in August, up from 11% in July.
  • 12% of letting agents in the North West reported PRS rent increases in August.

The reason for the drop in the number of landlords raising PRS rents is that many educated landlords are making use of specialist rent protection insurance to guarantee continuous rental income.Rent protection insurance provides landlords with peace of mind that their PRS rent will be paid and allows tenants to feel more financially secure within their tenancies, which encourages them to stay in the rental property longer, creating a positive solution to what could become an untenable situation should the tenant suddenly experience a change in circumstances.

ARLA also report that the supply of available rental property coming to the marketplace has fallen again, down from an average of 189 properties per letting agent branch in July, to only 178 per branch in August.

Tenant demand only increased marginally during August, with ARLA letting agents reporting up to 36 prospective tenants registered per branch up from 35 the month previously.

ARLA Managing Director, David Cox, said “Our findings this month are good news for the majority of tenants, as less are experiencing rent hikes. However, a third of agents are still seeing landlords pushing rents up, which reflects the sorry state of affairs in the market. With increasing pressure on the dwindling supply of housing, and the number of house-hunters growing, rent increases are unfortunately very common, as one in three tenants are experiencing. Despite the fact that PRS rents have fallen this month, it’s likely they will go back up again over the next few months.”

Discover how specialist Rent Protection insurance from Legal 4 Landlords can help your property rental business – Click Here!

This was written by Mike Clarke. Posted on at 10:30 am. Filed under Insurance, Landlord News. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.