More and more people are looking towards the lettings sector, with demand for good-quality rental accommodation hitting a record high throughout January.
Last month saw an average of 88 prospective tenants are registered per member branch of ARLA Propertymark – an increase of 57% compared to the 56 tenants per branch in December.
It means that year-on-year, demand for rental accommodation has increased by more than a fifth (21 per cent), rising from 73 tenants per branch in January 2019.
Despite the rising demand for rental homes, the number of properties managed per ARLA branch fell from 206 in December to 191 in January.
That is bad news for tenants, with 42% of letting agents witnessing landlords increasing rents in January, compared to 32% the previous month. Year-on-year, that figure is up from 26% in January 2019, and 19% in January 2018.
How much does it cost to rent in Plymouth?
According to Dataloft, over the last 12 months the average rent achieved for properties let in Plymouth was £641 per calendar month (pcm).
Most of those properties were flats, which accounted for 46.7% of all properties let since January last year.
That correlates with the age profile of tenants, which showed that nearly half of all Plymouth tenants were in the 18-29 age bracket.
What does it mean for Plymouth landlords?
Carla Ryder, Business Development Manager at Lang Town & Country, says: “We’re finding that family homes are getting let on first viewings since the beginning of the year.
“Here in Plymouth, there is certainly a shortage of supply of well-presented properties compared to the current high demand from tenants.
“However, that high demand means it’s a fantastic time for landlords who rent out their properties, as rents are also increasing.
“We’d urge anyone who is thinking about renting out their property to contact us immediately, as we have potential tenants who are waiting for good-quality homes in Plymouth right now.”
Carla Ryder, Business Development Manager at Lang Town & Country
What does ARLA Propertymark think?
David Cox, ARLA Propertymark Chief Executive, says: “This month’s results are a huge blow for tenants. With demand increasing by more than half, but rental supply falling, rent costs are unsurprisingly being pushed up.
“Our recent research found that tenants could miss out on nearly half-a-million properties as more landlords exit the traditional private rented sector and turn towards short-term lets which will only serve to worsen the problem for those seeking longer-term rental accommodation.
“With the Spring Budget around the corner, it’s important that the Government works to make the private rented sector attractive to landlords again, rather than introducing complex legislation which ultimately squeezes the sector and leaves tenants worse off.”