The financial pressures on landlords created by the recently introduced tenant fees ban is, as predicted, forcing up rents.
Tenants are finding it tougher than ever to negotiate a rent reduction following the tenant fees ban, as rents reach an all-time high.
According to ARLA Propertymark data, the number of tenants negotiating rent reductions fell to 1.1% in Decemberacross 303 of its letting agent offices – the lowest since 2015.
Its December Private Rented Sector report revealed that while the number of agents witnessing rent hikes remained at 32%; year-on-year, this figure is up from 16% in December 2017 and 18% in December 2018.
David Cox, ARLA Propertymark chief executive, says: “While we have seen a slight drop in the number of agents witnessing landlords increasing rents, overall rents remain high and now it seems that tenants are finding it harder than ever to negotiate a reduction in rent.
He adds: “As rents continue to rise, tenants will find it even more difficult to find suitable accommodation. It’s important that long overdue legislative changes are implemented to make the market attractive again for both tenants and landlords.”
ARLA Propertymark adds that demand from prospective tenants continued to fall, with an average of 56 prospective tenants registered per branch, down from 67 in November, falling for the third consecutive month.
However, the number of properties managed per branch rose last month from 203 to 206. Year-on-year supply is up from 200 in December 2017 and 193 in December 2018.