Whil it may not come as a shock to those who have kept their eye on the rental market this past year, the report outlines a steady trend of increasing rents and a decline in the number of available properties on the market.
The average number of properties managed by each agency is down to 169 – down 12% compared to March 2015 when this figure was 192. This marks the lowest level since records began in January 2015. Whilst these figures seem minor, this will cause a knock on effect that will echo down to tenants – as the PRS has already highlighted.
The latest data from ARLA has highlighted that nearly a third of tenants (32%) have experienced a rise in their rents and this number is expected to continue rising as landlords seek to cover costs caused by changes to the buy to let market.
Following the changes to the stamp duty surcharge, the ARLA report has also highlighted a problem area of portfolio landlords stating that they are no longer seeking new properties to add to their lists, to avoid taking hits due to both the stamp duty change as well as the cap for tax-relief for buy to let mortgages.
Another factor that is being discussed with ARLA agents is the possibility of rental properties declining over time as landlords struggle to afford maintenance costs alongside the high stamp duty charge.
These changes are combining to present the inevitable issue of a shortage of rental properties over the next few years. The landlords that remain are left with very few options in the face of increasing costs but to either take the financial hit themselves, withdraw from the market entirely – which causes a knock on effect of reducing rental supplies, or be forced to raise their rents to cover the costs.
With ARLA carefully studying the effects of all the recent changes, we can only hope that the government takes note of the figures coming through now and over the course of the next few months to monitor and adapt to changes that are currently projected to have a detrimental effect on the rental market.
If you’re looking for a home in Leeds, why not call our friendly team who will be happy to advise on any of our properties for let. Should you wish to book a viewing, why not call our Sales Team on 0113 322 9242.