PRS
Report
ASSOCIATION OF RESIDENTIAL LETTING AGENTS
PRIVATE RENTED SECTOR REPORT
May 2015
For further information:
Association of Residential Letting Agents Press Office
020 7566 9777
[email protected]
PRS
Report
May 2015 PRS Report
SUPPLY PLUNGES AS DEMAND
CONTINUES TO SOAR FOR RENTERS
KEY FINDINGS
 ARLA letting agents saw a decline in the number of rental properties available in May, with
179 properties managed per branch – down from 193 in April
 In May, ARLA letting agents had 36 prospective tenants register per branch
 Over a third of ARLA letting agents reported that they had seen rent increases for tenants in
May
 Three in four ARLA letting agents predict that demand for rental properties will grow over
the next five years
 ARLA agents reported that on average tenants stay in a property for 18 months
 In May it took five viewings per property on average before it was let
 The average void period ARLA agents reported between tenancies in May was three weeks
 ARLA members reported that the number of landlords selling their buy-to-let properties in
London had decreased - from six in April, to two this month
NEXT FIVE YEARS
 Three in four ARLA agents do not envisage supply and demand levelling out, expecting
demand within the private rental sector to increase over the next five years
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Report
NUMBER OF MANAGED PROPERTIES
Average number of properties
managed per branch was 179 in
May, a seven per cent decrease from
193 in April
Three in five (60%) ARLA agents managed fewer than 200 properties per branch in May, a quarter
(25%) said they managed 300 properties or more.
The highest number of properties recorded per branch regionally was in Scotland with an average of
273 per branch. The lowest recorded number per branch was in the North East with 88 properties.
300
250
200
150
100
50
-
1
Figure 1: Average number of properties managed per branch
NUMBER OF PROSPECTIVE TENANTS
Average number of prospective
tenants in May remained the same
as April, with an average of 36 per
branch
1
Figure 1 – Data in the chart should be used indicatively due to the base sizes for certain regions being below
50
PRS
Report
Two thirds of ARLA letting agents (66%) reported that they registered between 1 and 50 prospective
tenants in May. Almost three in ten agents (29%) reported that they registered over 50 per branch.
The region with the highest number of prospective tenants registered per branch was the North
East, with an average 48 per branch.
60
50
40
30
20
10
-
2
Figure 2: Average number of prospective tenants per branch
NUMBER OF LANDLORDS SELLING BUY-TO-LET INVESTMENTS
Average number of landlords selling
buy-to-let investments in May was
three per branch
The number of landlords selling their buy-to-let investment properties decreased by one this month,
with an average of three for sale per branch – down from four in April.
Three in five (59%) ARLA agents said that between one and five landlords on their books were selling
their buy-to-let investment properties in May. However, a quarter (25%) said that no landlords were
doing so this month.
2
Figure 2 – Data in the chart should be used indicatively due to the base sizes for certain regions being below
50
PRS
Report
AVERAGE LENGTH OF TENANCY
Average length of tenancy reported
in May was 18 months
In the East Midlands, ARLA agents reported that tenants typically stay in a property marginally
longer than the UK average at 20 months. In contrast, those in the North East stayed for only ten
months on average.
25
20
15
10
5
0
AVERAGE MONTHLY RENT
Over a third (34%) of ARLA agents
saw monthly rents increase in May
The number of ARLA agents reporting rent increases has been rising since January, when only 27%
agents reported hikes for tenants.
The South West saw the highest number of landlords increasing rent per calendar month, with
almost half (49%) of ARLA letting agents reporting an increase. Agents in Yorkshire and Humberside
PRS
Report
on the other hand only saw just two in ten (19%) landlords increasing monthly rent, leaving less
tenants facing rising costs.
60%
50%
40%
30%
20%
10%
0%
3
Figure 3: Percentage of agents that saw monthly rent increase
AVERAGE VOID PERIODS
Average void period for properties
between tenancies in May was
three weeks
Two in five (44%) ARLA agents said the average void period was less than two weeks, while a further
two in five (39%) said void periods were typically two to four weeks. Just over a tenth (15%) reported
properties had been left void for five weeks or more in May.
AVERAGE NUMBER OF VIEWINGS
Average number of viewings per
property before it was let was five in
May
3
Figure 3 – Data in the chart should be used indicatively due to the base sizes for certain regions being below
50
PRS
Report
Two in three (66%) ARLA agents said a property was most likely to be let after between one and five
viewings, while a third (33%) said it would take a property more than five viewings before it was
taken off the market.
Agents in Scotland reported that it took marginally more viewings, with the average property being
let at six viewings, whereas agents in the East of England reported that properties were being let
after just three viewings on average.
-END-
Notes to Editors:
About the research
Opinium Research carried out an online survey among 416 ARLA member branches between 4th and 12th June
2015. ARLA Licensed letting agents were surveyed on a number of key rental sector issues including supply and
demand, the management of BTL properties, and monthly rent prices. www.opinium.co.uk
About ARLA
ARLA is the UK’s foremost professional and regulatory body for letting agents; representing over 8,000
members. Our members operate to professional standards far higher than the law demands and we campaign
for greater regulation in this growing and increasingly important sector of the property market. By using an
ARLA Licensed agent, consumers have the peace of mind their agent will provide a professional service and
their money is safeguarded by a Client Money Protection scheme.
For further information contact:
ARLA Press Office
Tel: 020 7566 9777
E-mail: [email protected]