Rents increase following tenant fees ban

Tenants in the UK’s private rented sector have seen rents increase to a record high, according to figures for July from the industry body, Arla Propertymark. The data, supplied by letting agents, reveals a rent rise for the third consecutive month and follows the introduction of the Tenant Fees Act earlier this year.

According to David Cox, chief executive of Arla Propertymark: “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 figures reveal that 63% of agents have seen landlords put up rents, a 15% increase on June, which was a previous record high.

The report also showed that letting agents had an average of 184 properties per member branch in July, compared to 199 in June. However, each branch had an average of 73 registered prospective tenants, compared to 70 in June. Supply of properties was lowest in London where agents had an average of 147 properties.

According to David Cox, this demand for properties is also a factor in the rise. “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 is evident this is putting even more pressure on the industry.”

Fears have been expressed of landlords quitting the market following proposed legislative changes; to section 21 no-fault evictions, for example. However, in July, the number of landlords exiting the market remained at four per branch, the same from July 2018.

Read more about this story on the Property Wire website.