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TODAY'S OTHER NEWS

Highest number of tenants negotiating rent reductions since records began

There was an 85% rise in the number of tenants successfully negotiating rent reductions in October as the supply of available properties increased, according to new figures from ARLA Propertymark.

The data shows that the volume of tenants successfully negotiating rent reductions rose from 2% in September to record high of 3.7% in October - the highest level since records began in January 2015. 

In line with this, the number of tenants experiencing rent increases dropped for the second month running in October, with 24% of agents reporting that landlords increased rents, compared to 31% in September and 40% in August.

Demand from prospective tenants increased in October, with the number of house-hunters registered per branch rising to 71 on average, compared to 63 in September, while the supply of rental stock edged up from 194 in September to 198 in October, which is the highest level seen since December last year.

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.”

Poll: Are you surprised that there has been a sharp rise in the number of tenants successfully negotiating rent reductions?

PLACE YOUR VOTE BELOW

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    Ha Ha Ha! I don't think so. Rental property is in short supply and rents are going up!

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    Rents are going up behind mortgage rate increase,service charge increase and maintenance charge increase, simple business rules other wise business fails!!!
    Always increase rent to cover my increase.

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    rents aren't going down in my neck of the woods, i did once in 2008 agree to a rent reduction, in hind sight i wish i hadn't, i should have invited him to leave, i was pleased when he did go, he was a pain.

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    Love to see a bit more information. I suspect it is "Sensitive" landlords reading too much BBC type news.

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    If mortgage rates go down, property prices go up and rents also go up. If mortgage rates go up, rents go up. If mortgage rates stay the same, rents go up with general inflation and market forces. I can't think of any scenario when rents would go down or when I would agree to a rent reduction.

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    I can and that is when affordability is the main driving force in the market.
    In our area you can charge what you like, but you won't get anybody to rent your property, simple as that.

     
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