Drop in number of landlords increasing rents for tenants

Drop in number of landlords increasing rents for tenants

Despite the rise in demand for properties in the private rented sector, and the continued growth of generation rent, fewer landlords are now increasing rents for their flats and houses, which is good news for tenants nationwide. 

According to the latest release from the Association of Residential Letting Agents (ARLA), the number of letting agents reporting a rise in price for tenants as of August sits at just 33 per cent. 

This is the lowest that this metric has sat at since April of this year, and it is the first time in the whole of 2015 that there has been a fall in the number reporting an increase in rent compared to the month that came before. 

August's level was a fall from the 37 per cent who were reporting higher rents for tenants as of the month before, and shows that even in a period where the market is seeing some of its best performance in history, it doesn't need to hit tenants in the pocket. 

One of the main reasons for a fall in the number of tenants who are being hit by price increases could be the fact that more are now seeing their rental property as a long-term option when it comes to deciding where to live. If they can offer their landlord a guarantee that they will stay for longer, something that is becoming more and more common, then the owner has a guaranteed income, and will be less likely to increase prices as a result. 

"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," said David Cox, ARLA managing director.

However, he also went on to say that for the rest of this year and into 2016, we may see prices start to creep upwards once again as a result of demand around the turn of the year from prospective tenants.