Demand from tenants continued to increase in September, while new supply remained flat
The average number of new prospective tenants per lettings branch reached an average of 79 in September, according to the latest private rented sector report by the Association of Residential Lettings Agents (ARLA), the highest level of demand recorded for over two years.
While the number of new tenants has increased, the average number of properties managed by an ARLA member branch remained at 189, the same level as previous month.
Tenancy lengths also reported an upswing in September, averaging 19 months, which is one month longer than seen in August.
The number of lettings agents seeing rents rise has increased year-on-year, according to the organisation, with 27% of agents reporting a growth in rents in September 2017, compared to a year earlier, when just 24% reported increases.
Despite growing annually, September marks a slight decline from the 35% of agents who reported an increase in rents in August.
Commenting on the index, ARLA’s Chief Executive, David Cox, said:
‘As summer drew to a close in September, demand increased in line with our expectations, and while it’s too soon to see the effect of this on rent costs, we know that when supply and demand are conflicting, rent prices will just continue to rise.’