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Too many tenants still chasing too few rental properties, says Propertymark

Poll of member agents by trade association shows rental market remains wildly out of kilter despite slowing economy.

Nigel Lewis

estate agency window properties

Pressures on the private rented sector continue as 80% of letting agents canvassed by a new industry poll report rising rents.

Propertymark, which conducted the poll for its latest market snapshot, says although agents saw an additional five rental properties per branch coming onto the market last month, they also saw on average an extra 35 prospective tenants registered for properties.

Such an imbalance between supply and demand continues to create what the organisations describes as the ‘great rent rise’ as on average branches saw 113 applicants chasing ten properties, up from 78 in February.

The trade association is clearly worried that the recent renting reform White Paper will persuade more landlords to sell their properties and bring even greater upward force to bear on rents.

White Paper

emerson“Pressures on the sector are not easing, especially in England given that the recent Renters’ Reform White Paper has now been published,” says Nathan Emerson, CEO Propertymark.

What’s important is that landlords understand that this paper is a set of proposals and that there is still a process of debate and discussion before any legislation is brought in.

The UK Government have also committed to ensuring landlords have access to their properties via a revised section 8 notice.

“Given the ever-widening gap between supply of homes and demand, it is crucial that Government’s across all nations prioritise reforms that incentivise new and existing investment in the sector.”

The White Paper does mention greater restrictions on rent increases, but only mild ones including rises to once a year and giving tenants more powers to take landlords to a Fair Rent tribunal.

Read more about rent rises.

June 27, 2022

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