Tenants Suffer as Rents Soar Due to Tenant Fees Ban
Rents soar to highest on record in June, while demand from prospective renters also rose and the number of properties under management fell, according to ARLA Propertymark’s June Private Rented Sector (PRS) Report for June.
- The number of tenants experiencing rent rises increased to the highest figure on record in June, with more than half (55 per cent) of agents witnessing landlords increasing them. This is a 22 per cent increase from May which was a previous record high.
- Year-on-year, the number of tenants facing rent increases is up from 31 per cent in June 2017, and 35 per cent in June 2018 [Figure 1].
Supply of rental stock and demand from tenants
- Letting agents had an average of 199 properties under management per member branch in June, a decrease from 201 in May.
- Demand from prospective tenants also increased marginally in June, with the number of house hunters registered per branch rising to 70 on average3, compared to 69 in May.
- Year on year, demand has fallen, from 71 house hunters registered per branch in June 2018.
Landlords selling their buy-to-let
- In June, the number of landlords exiting the market remained at four per branch. This stood at the same figure in June 2018.
David Cox, ARLA Propertymark Chief Executive, said:
“Unsurprisingly, rent costs hit a record high in June as tenants suffered the impact of the tenant fee ban. 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.
“In addition to the repercussions of the Tenant Fees Act, the proposed abolition of Section 21, coupled with the Mayor of London’s recent call for rent controls, will only cause the sector to shrink further. 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.”
Kindly shared by ARLA Propertymark