9:07 AM, 28th August 2019, About 3 years ago 6
The latest survey of ARLA agents show a record number of rent increases for tenants in July with 63% of agents reported that landlords raised rents, This is up from an already record high of 55% in June, and over double the reported rent rises in the same month last year.
ARLA have issued an unsurprising ‘we told you so’ to government as the ban on fees is feeding through to rent rises instead. Although there have been no statistics to date as to what percentage the rent increases are covering the loss in fee income.
Supply of rental property from agents has also decreased from 199 to 184 per branch on average between June and July. The number of landlords exiting the market remains stable over the last year at 4 per branch per month
Chief executive of ARLA Propertymark, David Cox, 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.”