Record number of tenants receive rent reductions
More tenants than have been seen in almost four years have had their rents reduced, a report has shown.
The number of tenants negotiating rent reductions jumped from two per cent in September to 3.7 per cent in October, which is the highest figure since records began in January 2015.
The figures were revealed in the new ARLA Propertymark October Private Rented Sector Report.
In line with this, the number of tenants experiencing rent increases fell for the second month running in October, with 24 per cent of agents reporting that landlords increased rents, compared to 31 per cent in September and 40 per cent in August.
The supply of available properties rose from 194 in September to 198 in October.This is the highest figure seen since December 2017, when supply stood at 200 and is up nine per cent year on year.
Demand from prospective tenants also increased in October, with the number of house-hunters registered per branch rising to 71 on average, compared to 63 in September.
David Cox, ARLA Propertymark chief executive said: “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.”