As the festive season rolled in last December, wallets across the UK felt an extra pinch. According to Propertymark’s latest Housing Insight Report, a significant 35% of their members (property agents) reported a hike in rental prices. This rise in costs has left many tenants grappling with higher bills during what is already a financially demanding time of the year.
Interestingly, it wasn’t all about increases. Nearly half of the Propertymark members noted that rental prices remained stable, providing some solace amidst the turmoil. However, the rising trend is hard to ignore for a considerable chunk of renters.
Holiday Slump in Tenant Demand
The report also shed light on the tenant demand during December, a period traditionally marked by a slowdown due to the holiday season. There was a noticeable dip in the number of new prospective tenants – from 86 per member branch in November to just 63 in December. It seems the season of cheer wasn’t quite as merry for landlords looking to fill their properties.
A Squeeze on Available Properties
Matching the downward trend in tenant interest, the number of available rental properties also saw a slight decline. The average per member branch dropped from 10 properties in November to 9 in December. This decline in availability could be a factor in driving up rental prices, as the age-old law of supply and demand kicks in.
Rental Arrears A Growing Concern
Amidst the festivities, a less cheerful trend was observed. Rental arrears – situations where tenants fall behind on their rent – were on the rise. In December, 4.5% of properties were in arrears per member branch, up from 3.5% in November. This uptick is a worrying sign, indicating that more tenants are struggling to keep up with their financial commitments.
The Need for Government Action
Timothy Douglas, the head of policy and campaigns at Propertymark, weighs in on the situation with a note of concern. He said, “Propertymark’s December Housing Insight Report demonstrates that the rental market is still experiencing turbulence with the cost of renting and rental arrears on the rise. That is why it is imperative that all governments across the UK do more to encourage investment in the private rental sector by reducing taxes for landlords and introduce policies that increase the number of homes to rent and bring down the cost of renting.”