Demand for rental accommodation falls to two year low
In December, there were 26 prospective tenants registered per member branch. This is the lowest level since January 2015.
The number of rental properties managed per branch increased from 185 in November to 188 in December. Following last year’s increases in taxes for landlords, including stamp duty and capital gains tax, almost half (46 per cent) of agents expect to see supply decrease this year.
The number of letting agents witnessing rent increases went up to 19 per cent while a year previously, in December 2015, the number of rent rises fell month on month from 23 per cent in November 2015 to 18 per cent in December.
David Cox Managing Director, ARLA:
"Although December’s figures could indicate a bright future for renters, with the Government’s impending ban on letting agent fees, the future is actually rather bleak for the UK’s renters.
"Although we saw demand fall and supply rise slightly last month, these are in line with seasonal expectations and is what we expect to see in December. If the Government goes ahead with an outright ban on fees, tenants will unfortunately be the ultimate victims, as costs are recouped for the vital services fees cover."