Pressure in the Rental Market

The PRS faces record pressure

PRS REPORT: In February, Propertymark members reported that an average branch had just five properties available to rent in February, which continues the downward trend that our data shows started to fall in March 2021.

This is a 44 per cent decrease from a four-year average of nine. Agents in the North West of England, East Midlands reported the lowest stock at an average of two per branch with Wales close behind with an average of three. 

Demand from tenants 

There is an average of 142 applicants registered on Properpertymark member agents' books. This is a record high for the month of February and year on year a 73 per cent increase from February 2021 when agents recorded 82 applicants per branch. This figure has been on an upwards trend since April 2017. Of these applicants, an average of 78 were newly registered in the last month. 

Agents in the South West of England reported the highest demand with an average of 195 applicants per branch, closely followed by the North East of England where agents reported an average of 184. 

New properties to the market

The number of new properties being rented out by agents has fallen for the third month in a row. The national average for member agents was four per branch, a decrease from January’s six.

Yorkshire and Humberside along with the West Midlands saw slightly more than the national average coming to market both at five. 

There are many factors affecting the private rented sector which are impacting stock levels. Whilst in terms of rising rent prices it appears to be a good time to be an investor, once other factors are included yields can be much lower.

Many landlords have struggled under the increasing legislative and financial pressures they are facing. As we await the Renter’s Reform White Paper it is clear more changes are on the way and it’s vital that the private rented sector is valued to avoid unintended consequences.

Posted on Thursday, May 19, 2022