Impact of the Tenant Fees Act continues to be felt
David Cox, ARLA Propertymark Chief Executive, said: “Although it’s positive to see that supply has risen, it is nowhere near enough to counterbalance the rapid pace of rising rents, which have reached a new record high for the fourth month running. Two thirds of agents reported landlords raising rents last month, which is a significant increase when compared with the two fifths of agents who witnessed rises in August last year.”
“Unfortunately, the impact of the Tenant Fees Act will continue to be felt by tenants, as in order to keep their heads above water landlords will need to continue increasing rents to cover the additional costs they now have to bear.”
ARLA Propertymark is today issuing its August Private Rented Sector (PRS) Report.1
Rent prices
- The number of tenants experiencing rent rises rose marginally in August, with 64 per cent of agents witnessing landlords increasing them, compared to 63 per cent in July.
- Year-on-year, this figure is up from 35 per cent in August 2017, and 40 per cent in August 2018 [Figure 1].
Supply of rental stock and demand from tenants
- The number of properties managed per branch rose to 197 in August, from 184 in July.
- Year-on-year is the same, but supply is up by 4 per cent from August 2017.
- Demand from prospective tenants also increased, with the number of house hunters registered per branch rising to 76 on average3, compared to 73 in July.
Landlords selling their buy-to-let
- In August, the number of landlords exiting the market remained at four per branch.
1 Opinium Research carried out an online survey among 279 ARLA Propertymark members from 3rd September to 18th September 2019. ARLA Propertymark Protected letting agents were surveyed on a number of key rental sector issues including supply and demand, the management of BTL properties, and monthly rent prices. www.opinium.co.uk
2 Records began in January 2015
3 Based on new option ranges, so comparisons beyond April 2017 unavailable
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Section 21 ban would devastate PRS
Member Since September 2015 - Comments: 9
10:39 AM, 30th September 2019, About 7 years ago
Unfortunately they won’t see the cause and effect of the fee’s ban etc. They will only see the rise in rents as a reason that there needs to be rent controls.
Member Since September 2019 - Comments: 77
11:28 AM, 30th September 2019, About 7 years ago
So I am reading here about the ‘rapid pace of rising rents’ but I can’t see anywhere in the report, detail on what the rent rise actually is?
My understanding is the ONS has reported a rise of 1.3% in the 12 months to May 2019 within the PRS. So less than inflation.
Perhaps the only reason there is a need for rent controlls is the misinformation seen in the headlines?
Member Since April 2014 - Comments: 985 - Articles: 2
1:11 PM, 30th September 2019, About 7 years ago
What complicates matters is that a rent increase will be due to a number of reasons not just the Tenant Fees Act. The biggest influence for many will be felt after this years tax return, when section 24 of the finance act really starts to bite! Some landlords will see an increase in real and perceived risks associated with their investments such as the loss of section 21, inadequate court processes, habitation act, increased HMO licencing, BREXIT, Labour policy/likely manifesto if elected and a general bad feeling experienced within the PRS etc. etc.
Member Since November 2016 - Comments: 99
8:46 AM, 1st October 2019, About 7 years ago
Government increase regulation and rents go up. I for one am shocked.