ARLA Propertymark has reported that the number of new prospective tenants registered per letting agent branch increased from 71 in June, to 79 in July – the highest level seen in 2018 so far.
It was last this high in September 2017, when there were also 79 per branch.
Year on year, demand is up 13% as there were just 70 prospective tenants registered per letting agent in July 2017.
The supply of available properties moved in the opposite direction to demand, falling from 191 in June, to 184 last month. Year on year, this figure is down 4% from 192 in July 2017.
In June, the number of tenants experiencing rent hikes increased to 35%, but this dropped slightly in July, to 31%. Year on year, this figure hasn’t changed, standing at 31% in July 2017 as well.
David Cox, ARLA Propertymark’s chief executive, said: “Buy-to-let investors are being pushed out of the market by increasing costs and continued regulatory change, and new landlords are being deterred from entering.
“Last month, an average of four landlords took their properties off the market per branch, up from three this time last year – and as supply falls, competition among tenants increases, which pushes up rent costs. Almost a third saw their rents rise last month, and although this figure was down from June, it’s still far too high.
“To put tenants back in the driving seat, we need more homes available to rent, and the only way this will be achieved is if the government makes the market more attractive for buy-to-let investors.”