Findings from both the Association of Residential Letting Agents (ARLA) and National Housing Federation (NHF) paint a bleak picture for UK tenants.
In May ARLA agents managed an average of 179 properties per branch, down 7% from April and the lowest level recorded this year.
The rental shortage is worse in London with just 134 properties managed per branch compared to 273 per branch in Scotland.
But while supply has fallen, demand for rental properties has levelled. ARLA members reported 36 potential tenants registered per branch in May, remaining the same as the previous two months.
The supply shortage means rents are continuing to rise. During May, a third (34%) of ARLA agents reported rent increases for tenants. This figure has been slowly creeping up from the start of the year, when 27% of agents reported hikes for tenants.
Tenants in the South West were the most affected by monthly rent increases with just under half (49%) of agents reporting an increase.
ARLA managing director David Cox said: “It is worrying to see that there is such a sharp decrease in supply, when we know there is already a struggle to meet housing needs.”
The National Housing Federation (NHF) showed Britain’s private renters were getting a rough ride in contrast to their European counterparts.
It found rents in the UK were the highest in Europe taking up the biggest chunk of people’s salaries.
UK rents average £750 (€902) per month in comparison to the European average of €481 (£400). In countries like Germany and Holland, where earnings are similar, private rents are around 50% cheaper than in the UK (€600 and €625 respectively).
Private renters in the UK spend almost 40% of their income on paying their rent in comparison to the European average of 28%.
NHF chief executive David Orr said British renters were getting a raw deal in relation to tenants elsewhere in Europe.
“Not only do they face crippling rents, but renters in the UK have almost no certainty about whether they will be able to stay in their home from one year to the next. How can we expect people to raise families, start businesses or save for their first home if they don’t even know where they will be able to afford to live?” he said.
But despite these figures, research by a buy-to-let mortgage lender has claimed the majority of private rented sector tenants are happy with the terms of their tenancy agreements and the level of rent they pay.
According to Paragon 70% of tenants consider the rent charged by their landlord to be either good or very good value for money.
