The number of tenants experiencing rent rises hit the highest level on record in July, according to ARLA Propertymark’s latest PRS report.
The trade body for letting agents report that 63% of its members witnessed landlords increasing rents in July.
Year-on-year, the number of tenants facing rent increases is up from 31% in July last year and from 55% last month, driven largely by a widening supply-demand imbalance in the market.
Letting agents had an average of 184 properties under management per member branch in July, down from 199 in June.
The drop may be due partly to the fact that the number of landlords exiting the market in July remained at four per branch. This stood at the same figure in July last year.
David Cox, ARLA Propertymark chief executive, said: “Following the Tenant Fees Act coming into force in June, rents have continued to rise, which we believed would happen.
“The fees agents have been banned from charging are still being paid for by tenants, however, it’s now through their rent, rather than upfront costs.
“The fall in the number of properties available further increases competition in the market, which only pushes rents up or forces landlords to exit the market entirely.
“As the sector faces increased levels of legislation, it’s evident this is putting even more pressure on the industry.”
Average number of tenants experiencing rent hikes year-on-year for the month of July