Demand from tenants weakens in October: Propertymark

The average number of potential new tenants per rental agency fell from 83 in September to 71 in October, according to Arla Propertymark.

It is in the Northwest that we look the most, with an average of 163 potential tenants per branch.

Yorkshire and Humberside, Wales and Northern Ireland jointly have the fewest tenants per branch, at 26.

Additionally, the number of existing tenants who saw their rent increase has declined, with 75% of real estate agents reporting it in September and 68% in October.

At the same time, 0.8% of tenants succeeded in obtaining a rent reduction in September against 0.5% in August.

Despite this, the number of properties managed by agency increased on a monthly basis from 199 to 196, up from 213 in October 2020.

In the North East, this figure climbs to 350 in October and, in London, drops to 69 managed by agency.

Propertymark CEO Nathan Emerson said: “The private rental sector remains under pressure. However, demand fell for the second month in a row and the number of tenants experiencing rent increases declined.

“There are obvious issues with the availability of properties, with some areas, London in particular, being in very low rental stock. This is exacerbated by ongoing legislative and regulatory changes, as well as energy efficiency goals, both of which could squeeze homeowners and cause them to consider exiting the market.

“Under this growing pressure, it is crucial that measures are introduced to retain owners and provide more incentives to enter the industry. “

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