The latest monthly report from ARLA, The Association of Residential Letting Agents, reveals that the number of private rented properties available rose in July.
The report reveals that agents managed an average of 178 properties in June, however this rose to 189 properties in July.
During the same month there was a very slight decrease in demand with 35 prospective tenants registered per ARLA branch in July, compared to 36 in June.
35% of ARLA agents said that they expected the supply of rental properties to continue increasing over the next five years.
Recent changes to pensions in April could be responsible for an increase to the levels of supply, and also the expectations of the increase in supply to continue over the next five years. A greater access to pension funds has created an opportunity for more people to invest in the buy-to-let property market.
The report also reveals that letting agents are continuing to see increases in the cost of renting for tenants, with 37% reporting rents had increased between June and July, the highest number since tracking began in January when levels were at 27%.
Tenants in the West Midlands have been affected by rent increases the most with 64% of agents reporting rents had increased in July, however in comparison only 21% of tenants in the North West experienced a rise.