Rent Increases:

The direct effect of the Tenant Fees Ban is playing out in the form of renting increases, where the costs are simply being transferred from fees to rents, as was widely predicted.

ARLA Propertymark’s latest (July 2019) Private Rented Sector (PRS) report indicates that average rents are rising and that UK rents reached a new record high for the third month on the run.

Given their increased costs, more landlords than ever are pushing for rent increases, with around 63% of agents being asked to increase, bringing the number of tenants facing rent rises to the highest figure on record. 15% more landlords increased rents since June, which was itself a record high month.

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ARLA report the number of tenants seeing rent increases up 31% since July 2018 and the West Midlands being the worst affected with 86% seeing a rent increase.

David Cox, Chief Executive of ARLA Propertymark, has said:

“Following the Tenant Fees Act coming into force in June, rents have continued to rise, which we believed would happen,”

“The fees agents have been banned from charging are still being paid for by tenants, however it’s now through their rent, rather than upfront costs.

“The fall in the number of properties available further increases competition in the market, which only pushes rents up or forces landlords to exit the market entirely. As the sector faces increased levels of legislation, it’s evident this is putting even more pressure on the industry.”

5 COMMENTS

  1. Well, who’d have thought that would happen!

    Apart from higher rents, losers will also be folks with pets, people needing guarantors (an extra cost and hassle you cannot now charge for, so why bother?) and all sorts of “marginal tenants” as I explain here….
    https://www.lettingfocus.com/blogs/2019/05/tenant-fees-ban/

    I expect to see data on this roll in within months.

    David Lawrenson
    LettingFocus.com
    Consulting Advice for Landlords and Organisations in the Private Rented Sector

  2. Is this because agents fees have increased as they cannot get the hidden extras?
    Landlord wants his net to stay the same.
    Thus rents must rise.
    If this the case ,there are many issues which need addressing as rents are just too high for average person.
    I make this comment as a landlord with a portfolio of 18 properties worth in excess of 12 million so I’m not Corby speak person

  3. Blackpool CouncIl has decided in its wisdom to become landlords themselves so instead of helping the constantly attacked and regulated landlord have gone up In competition against him. Apart from the millions in their pocket donated by central govt they don’t have any mortgages so section 24 is not a problem for them. Talk about an unlevel playing field! I wonder what the RLA and NLA are doing about this?

  4. My worry is that if rents are too high the politicians will play landlords against everyone else. They will screech ‘Rents are too high, that’s why we propose tenants can buy the property of their landlord at discount’. ‘Rents are too high that’s why we propose tenants can have their rent set according to their salary’ (most are on flexible labour in retail). Various other voter bribes.

    At the sametime we are seeing more and more millenials moving back in with mum and dad in order to save up. If this happens expect to be clobbered by the council for empty property on top of licence you paid for doing nothing to rent your place out on top of your repayment costs. This will in turn mean rents go down, house prices go down, and then sell off.

    I think small landlords have to band together to create their own passport system for tenants to compete with government designs, back that system with reduced rents for those who enter it in order to give it political clout. Effectively creating a new platform with some checks and balances.

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