Winter is setting in but no freeze on rent or tenant demand
This month there have been many stories in the press about the positivity of the private rented sector. At the beginning of the month it was reported that tenants have rebuilt their financial position, with the total number facing serious rental arrears falling by a significant 9% over the last 12 months. The average tenant deposit has also increased by 11% over the last year, and with deposits usually reflecting rental values, the figures appear to imply that demand for rental properties is outstripping supply causing pressure on the rental market.
Two reports out this month also predicted the long term growth of the private rented sector. The forecast from Savills predicts that there will be an additional 1.2 million households in England & Wales in the private rented sector by 2019, and the report from the Joseph Rowntree Foundation, predicts that by 2040 one in five people will live in private rented homes.
Brandon Lewis, Housing Minister, rejected calls earlier in the month from SAGEagent to make Client Money Protection compulsory. However, he seems to have had somewhat of a change of mind, as just this week the Government amended the Consumer Rights Bill to require letting agents to display whether they offer client money protection, a move that was welcomed by SAFEagent.