The East Midlands had the highest number of new tenants registered per lettings agent branch in November, with an average of 134, according to a report by Arla Propertymark.

In its November Private Rented Sector (PRS) report, the company found the number of prospective tenants registered was lowest in Wales, where there was an average of 26.

Overall, the average number of new prospective tenants in November was the highest on record for the month of November, at 82 per branch.

The number of tenants experiencing rent increases was 58%, the lowest rate since February.

Meanwhile, the number of properties managed per letting agent branch increased from 196 in October to 212 in November.

Year-on-year this is slightly lower than during October last year when the figure stood at 214.

Regionally, Scotland had the highest number of properties managed per letting agent branch with 304. But rental stock was the lowest in Wales with an average of 106 properties managed per branch.

Propertymark chief executive Nathan Emerson said: “Our latest PRS survey has shown a rebound in tenant demand following two consecutive months of decline. Many landlords are aware of how difficult this year has been for tenants and as a result we are seeing rent increases fall for the third month in a row.

“The private rental sector – which makes up a significant amount of the UK housing stock – is facing the reality that many landlords are increasingly considering an exit from the market.

“A key focus for the government in the New Year needs to be how to incentivise more landlords to remain in the sector and attract new interest in the market.

“However, looking towards the sector’s immediate challenge as the pandemic rears its head once again, the unfortunate reality is that we may see an increase in the number of renters falling into arrears. It is therefore vital that vulnerable tenants are adequately supported during this time.”