The report identifies rising demand overtaking supply as the primary reason behind the rental market inflation. Various market surveys by the likes of the Royal Institute of Chartered Surveyors (RICS) have shown that demand increased during the three-month period leading up to August this year, although the Association of Residential Letting Agents (ARLA) recently revealed figures that indicated a marginal decrease of demand during the month of July.

Both the organisations mentioned above have also confirmed that there is a general disparity between supply and demand in the rental sector, though they disagree on exactly how big the difference is. While RICS report that supply has significantly fallen off up to August, ARLA have reported an increase during July, though the supply is still not quite meeting demand even during the best of recent months.

Increase in Buy-to-Let Purchases Has Had ‘No Discernable Effect’

The successful entrepreneur and founder of Platinum Property Partners, Steve Bolton, said of the recent rental rate rise, “The surge in buy-to-let property purchases following April’s stamp duty changes has not had any discernible effect on the cost of renting and this trend isn’t likely to reverse any time soon, particularly as legislation planned for 2017 threatens to reduce rental stock and push prices even higher.

“The reduction of buy-to-let mortgage interest tax relief will make some landlords unprofitable, forcing them to pass on costs to tenants in the form of higher rents just to stay afloat. Even those who can still operate may be deterred from making further investments, reducing rental stock at a time of severe property shortage.”

Private Rental Still a ‘Valued Service’

With the new legislation meaning rental rates are likely to continue increasing, it seems that many tenants will soon be faced with difficult decisions with regards to where they rent. However, Mr Bolton was quick to point out that there is still a lot of value for tenants who intend to remain in the private rented sector.

Mr Bolton continued, “Although depicted as the undesirable alternative to home ownership, rental accommodation is a service valued by many, particularly young professionals looking for flexible accommodation or those not ready to commit to

the property ladder just yet. However, it’s important that tenants are not prevented from saving for the future by excessive rental prices.”



Services

Property Valuations
We offer a free, no obligation valuation service. We prepare and research thoroughly before we visit your property - always by appointment. We know the correct valuation for your property because we are local experts and, in any case, the more valuations we do, the better our guide will be. Please contact us to see how we can help you.
Quality Marketing
Marketing your property starts with appealing visual imagery. Our main goal is to add a personal touch to our property photos. We have our own in-house photographer who does all our photoshoots and allows us to truly represent our vision. We make sure you get the highest possible quality so that your property stands out from the crowd.
Property Management
Let us take the strain and anxiety out of managing your property with our hands-on approach. Our landlords can be assured that we will act on their behalf and with their best interests at heart. To ensure a fast, efficient and informative service for our landlords, we have installed the latest computer technology so that clients' payments can be made by electronic transfer, followed up with a detailed statement of accounts.
Legal and financial advice
Moving house can be one of the most stressful times of your life. However we know that by using our friendly, recommended law firm, Curry Popeck, that your conveyancing work will be dealt with speedily and efficiently. Stonehouse Financial is our recommended partner for mortgages & Enra Group for second charges, investment funding or bridging.
Find out more
Relocation Assistance
We are proud to be affiliated with Aussie Man & Van removals who are a market leading relocation firm covering the whole of the UK. They provide reliable relocation services and are fully insured by the BAR to give you the utmost peace of mind while your belongings are being moved.
Find out more
Maintenance
Our maintenance partner is APS Maintenance Ltd (APS) who have many years’ experience in residential property maintenance and building. With fully certified employees on call 24 hours a day, they provide an unparalleled service and speedy response to all maintenance issues.
Find out more