Half of Letting Agents Say Rents Are Up Since The Fees Ban
Posted on 01/08/2019 by Sulgrave Estates
The UK’s leading lettings industry association has claimed that rents are beginning to rise significantly as the predicted outcome of the tenant fees ban begins to roll-out across the housing market.
Agents who have reported rising rents increased to its highest proportion during June, the month following the beginning of the fees ban, the latest rental market snapshot from ARLA Propertymark reveals.
55% of agents canvassed by the association said they had witnessed landlords increasing rents during June, up from 35% a year ago and 30% in 2017.
Many landlords are increasing rents as letting agents seek to increase their management fees to make up the fees shortfall following the ban.
“Unsurprisingly, rent costs hit a record high in June as tenants suffered the impact of the tenant fee ban,” says David Cox, Chief Executive of ARLA. “Ever since the Government proposed the ban, we warned that tenants would continue to pay the same amount, but the cost would be passed onto tenants through increased rents, rather than upfront costs.”
Cox has also claimed that as well as the fees ban, the proposed abolition of Section 21, coupled with the Mayor of London’s recent call for rent controls, will drive down supply.
“In turn this will increase pressure on the sector because it will discourage new landlords from investing in the market, causing rents to rise for tenants as less rental accommodation is available,” he says.