The number of prospective tenants looking for new homes to rent has increased to the highest level seen since September 2017, the latest PRS report from ARLA Propertymark shows.
The data reveals that the number of new prospective tenants registered per letting agent branch increased from 71 in June to 79 in July.
Demand is up 13% year-on-year, but the supply of available properties is down, falling from 191 in June to 184 last month
In June, the number of tenants experiencing rent hikes increased to 35%, but this fell marginally in July, to 31%.
David Cox, chief executive at ARLA Propertymark, said: “Buy-to-let investors are being pushed out of the market by increasing costs and continued regulatory change, and new landlords are being deterred from entering.
“Last month, an average of four landlords took their properties off the market per branch, up from three this time last year – and as supply falls, competition among tenants increases, which pushes up rent costs.
“Almost a third saw their rents rise last month, and although this figure was down from June, it’s still far too high.
“To put tenants back in the driving seat, we need more homes available to rent, and the only way this will be achieved is if the government makes the market more attractive for BTL investors.”