The rental market has been going from strength to strength for some years now, thanks to the rising demand from tenants. And this appears to still be the case in 2017, with new data showing that the price of renting a home is rising at its strongest rate since the middle of last summer.
According to the latest data released by the Association of Residential Letting Agents (ARLA), in May, the average rental price paid by tenants in the private sector was up by 1.8 months when compared to the same time a year ago. The annual rise has now remained at the same level for the past two months.
It also said that 27 per cent of letting agents surveyed nationwide said they had seen their tenants paying more in May than they had the month before. This reading is the highest recorded at any time in the rental market since July last year, showing just how strong the sector continues to be in 2017.
Such rental increases come at the same time as the rental stock in the UK has climbed markedly, which shows that tenant demand is continuing to grow, and that agents have little concern when it comes to finding tenants. In the past 12 months, stock levels in the rental market are up by 11 per cent.
David Cox, ARLA chief executive, said that tenants should be aware, however, that they could face even higher rental charges moving forward, with letting agent fees set to be banned in the UK in the coming months. Many are expecting letting agents and landlords to simply increase rental prices to combat these changes.
"This is on top of any natural organic rent growth as well. The only thing which could offset this would be to significantly increase rental stock, but until this happens and supply and demand meet in the middle, rents will only become more and more unaffordable," he added.