The latest lettings market snapshot from agents’ trade body Propertymark insists that arrears in the private sector are actually falling slightly – but an industry supplier claims the reverse.
Zero Deposit – a deposit alternative firm – claims renters are increasingly searching the web for the effects of arrears “indicating that more are worrying about not being able to afford their repayments.”
The supplier’s research appears to be based solely on internet searches, with the claim that web searches for ‘rent arrears’ increased by 8.6% over the past three months.
There was also a 3.7% increase in interest for the search term ‘tenant rights’ which it claims is “indicating that more tenants could be struggling to pay their rent whilst also wanting to know where they stand when it comes to their rental market rights.”
Sam Reynolds, chief executive of Zero Deposit, says: “An increased interest in rent arrears is a potentially worrying sign and could indicate that more existing tenants are struggling to manage the high cost of renting, whilst landlords are also concerned about the protection in place to ensure they maintain a consistent stream of rental income.”
But Propertymark is significantly more upbeat in its assessment of the market, as seen by agents ‘on the front line’ dealing with landlords and renters.
Its latest market snapshot shows that in general, demand continues to outstrip supply, with the average number of applicants per member branch still hitting around nine people for each available property – but this is significantly lower than earlier in 2024.
The average number of new tenancies agreed per member branch stayed broadly static in October while average UK rents were 8.7% higher than in October 2023 and 0.9% higher than in September 2024
In October 2024, 55% of member agents reported that rents remained generally static, with 17% reporting they had seen an overall fall, and nearly 27% reporting they felt rents had increased.
The level of rental arrears dipped slightly in October 2024 and according to the trade body “remain within long-running parameters.”
