ARLA Propertymark January Private Rented Sector (PRS) Report has revealed that Welsh landlords are selling up at twice the speed of their counterparts elsewhere in the UK.
Data collected from Propertymark’s members for its January Private Rented Sector Report shows a snapshot of pressure in the Welsh market.
Welsh agents reported the highest overall figure of new applicants registering at an average of 313 per member branch but worryingly landlords are exiting the private rented sector at five per member branch. This is more than double the UK average of two.
Factors such as high sale prices and the impending changes due to be introduced through the Renting Homes (Wales) Act could be contributing to this.
What’s does stock look like
An average member branch managed 202 properties in total and reported welcoming six new properties to the market in January.
Of those properties, an average member branch reported having just nine that were empty and freely available.
New tenants registered
An average of 118 new applicants were registered per member branch in January which has increased significantly compared to 49 per branch recorded in December.
An average branch in the East Midlands saw 33 new applicants register, the lowest number regionally and conversely, members in Wales recorded the highest at a notable average of 318 new applicants per branch.
Exiting the sector
The UK average number of landlords that withdrew their properties in order to sell them stood at two per member branch.
Wales had the highest number of landlords exiting the private rented sector at five per member branch.
This number was lowest in the North East, where there was only an average of one per member branch.
Rents increased
74% of member agents reported rent prices increasing which has sharply increased from 56% in December 2021 which prior to January 2022, had continued to fall for four consecutive months.
Propertymark’s CEO Nathan Emerson said: “Our latest report shows an unprecedented spike in new applicants registering per member branch with a 140% increase in January compared to December.
“Setting this figure beside the small increase in the average number of new properties entering the market in January, there seems to be nowhere near enough private rented homes available.
“Wales is seeing the greatest number of landlords exiting the sector and interestingly, this could come as no surprise to many agents and landlords.
“With several changes on the horizon from the implementation of the Renting Homes (Wales) Act, landlords in Wales will be faced with further regulatory pressure.
“Coupled with the extremely high demand within the sales market in areas across Wales, these could well be contributing to the number of landlords exiting the sector.”
