Highest Rent Rises Since September Are Recorded
Growing numbers of landlords put up rents in January to record the first rises since September 2018, according to data.
ARLA Propertymark has crunched the numbers and found that the number of letting agents who say landlords put up their rents in January accounted for 26% of all new tenancies, compared to December's figure of 18%.
This is, the firm says, the highest rise it has seen since September.
That's when 31% of tenants signing agreements experienced rent rises.
Compared to January 2018, that's a year-on-year increase of 7%.
Number of rental homes available increased
The data also highlights that the number of rental homes available increased per branch to 197 last January, from 193 the month before.
The number of tenants looking for a rental home rose from 50 in December to an average of 73 in January.
David Cox, Arla's chief executive, said: "The results are a blow for tenants with demand growing by 46% and rents beginning to rise because of the increases in costs landlords have seen in recent years.
"There were also three landlords last month per branch selling their buy to let property and as landlords leave the market, rents will continue to increase."
He added that with the Tenancy Fees Act passing into law, landlords and agents are now preparing for a world without tenant fees.
The buy to let mortgage choice at 11 year high
Meanwhile, it's been revealed that the range of buy to let products is at an 11 year high.
The findings from Moneyfacts reveals there are 2,162 products available for investors and landlords today, a rise of 397 over the same period last year.
However, over the past two years, it's a rise of 706.
The survey also highlights that rates are starting to rise from 2018's record lows, with the average two-year fixed BTL rate growing so 3.12%, a rise of 0.2%.
Moneyfacts’ Darren Cook said: "It's encouraging that BTL landlords have greater mortgage choice than at any point in the last 12 years.
"Despite property market uncertainty, providers are not shy about offering landlords a wider choice of products, though this increased competition has not seen a drop in interest rates."
He said there are several reasons why BTL products charge a higher rate and this is partly down to economic uncertainty and providers considering the affordability and the rental income when they assess an application.