Rents were predicted to rise even further with 80% of agents predicting increases over the next five years due to landlords bumping up monthly costs to compensate for the loss of tax relief announced in the Summer Budget.
The report found those in the East Midlands suffered the most with 48% of agents stating that rents had increased in June, compared to only 17%.
Supply and demand shifted marginally in June, with an average of 178 properties managed per branch compared to 179 in May. There was an average of 36 prospective tenants registered per ARLA branch in June, the same as the previous three months.
The report also highlighted that supply in London continued to drop with only 118 rental properties managed in June, compared to 134 in May; a decrease of 12%.
David Cox, managing director, Association of Residential Letting Agents (ARLA), said: “It is worrying to see so many agents reporting an increase in the cost of rent over the last six months, especially considering so many people rent as a way to bridge the gap whilst they save to get onto the property ladder.
“Findings like this continue to prove that the housing crisis isn’t going to disappear anytime soon and it will take a while before we see steps heading in the right direction. The impact of the Chancellor’s reductions to the amount of tax relief buy-to-let investors can claim – announced in the Emergency Budget this month – will affect the cost of renting over the coming months and is likely to mean it will take even longer to see any improvement in affordability in the private rented sector.”
