Rents are expected to increase over the next few months, according to the latest survey from Just Landlords.
The study found that almost half of people in the UK - 49% - believe that landlords will increase rents in order to recoup costs as existing tenant fees, which will be banned this weekend, are likely to be passed onto them to pay.
The research also uncovered that those aged 25-34 and single individuals were the most sceptical about the positive impact of the upcoming ban.
The study suggests that the banning of fees will end up hurting the very people the government intends on helping the most, according to Rose Jinks, spokesperson for Just Landlords.
Jinks said: “There has been a lot of talk within the property industry that landlords will increase rent prices as a result of the tenant fees ban, as they look to recoup potentially higher charges imposed by letting agents.
“It is clear that our respondents felt the same; rents will go up, causing the government’s efforts to make renting cheaper fall flat on its face.”
While the majority of the UK are reluctant to believe scrapping tenancy fees will positively impact tenants, 27% of respondents think it would speed up the tenancy agreement process, 23% predict easier interaction with landlords and letting agents, and 22% think the change will reduce administration tasks for tenants.
Rose added: “The tenant fees ban is just around the corner, but so many of those involved in the private rental sector are unaware of what the new law even means.
“We urge tenants, landlords and agents to get themselves up to date, and prepare for the changes where necessary – don’t get caught out.”
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What a surprise! The final consumer (tenant) always ends up paying as no supplier is running a charity. If MP's had to have real jobs for 10 or 20 years before ruining ( not a typo) the country they might actually make a success of running it!
Rising rents will be a spur for government to introduce rent controls. It is obvious that Landlords will not be the beneficiary of regulation.
Every measure introduced that leads to increased rents (Removal of 10% wear and tear allowance, Clause 24, Tenants fees ban etc,) will eventually lead to rent control. This in my opinion is almost inevitable now, it's just a case of when.
Rent controls would just result in LL withdrawing their properties from LA management.
After all you can hardly ask a LA to collect the brown envelopes which will be stuffed with cash to top up the controlled rent!!
No LL will let at controlled rents.
It will just create a giant black economy.
Tenants and LL will conspire to evade rent controls as it will be the only way that tenants will be able to achieve a tenancy.
Tenants will know that any advertised rent will not be the true rent.
HMRC would lose billions in taxes as LL would only be able to declared the controlled rent!
Lenders would only be able to base lending on the controlled rent resulting in LL needing far larger deposits.
Rent controls would surely have a depressive effect on property prices.
Far fewer rental properties would be sustainable.
LL would need to reduce LTV or sell off properties that would need to be sustainable by the controlled rent levels.
Overall the leveraged PRS would reduce.
Rents would increase further by evasion of rent controls as supply became even more constrained.
Lenders would find the values of their loan books decline.
Maybe another CC.
In short rent controls would be a disaster for everyone.
They certainly wouldn't result in tenants not paying a market price.
It will just be paid in cash and then the official controlled rent.
No tenant will say anything as if they do they will be booted out.
Carl Assar Eugén Lindbeck, Swedish economics professor.
"Next to bombing, rent control seems in many cases to be the most efficient technique so far known for destroying cities."
So Government want cheaper Rents, why then have they spent last 12 years driving rents up with several rules & requirements, plus fines, sanctions, penalties, a load
of other requirements, licensing, Deregulation Act, s24, meddling with s21, wear & tear gone, how to rent, right to rent, Deposit debacle, c/gains tax, Insurance
premium tax hike to 12%
The list is endless then wonder why rents are what they are, is it any wonder 650 of them can’t agree on anything.
When you think about it Govts of all colours have presided over what had been a remarkably successful sector.
It has managed to house millions of migrants as well as indigenous UK nationals.
So from 1996 to 2015 the PRS was mostly allowed to get on delivering rental housing that was so vitally needed.
Then it all went horribly wrong with the Budget of 2015 with the introduction of the bonkers S24 policy.
Since then it has all been downhill!!
Not long now for rent controls I should imagine!!
That will be the final nail in the coffin for the PRS.
I am afraid history will have to be repeated so that the idiots learn again.
Trouble is many LL subject to these bonkers policies don't have the time for this history to be repeated.
They are apparently bringing forward their exit from the PRS which can ill afford them leaving.
Such circumstances will be extremely problematic for tenants.
Most LL are able to leave the sector without too many negative effects on them.
The same can't be said for the tenants.
Tenant demand is still exponentially increasing fuelled by continuing mass uncontrolled immigration.
I feel sorry for tenants but I won't be concerned with their plight anymore as I intend to be an Ex- LL!!
Rent controls will lead to ... higher Rents ! we all know that Landlords who have long-term Tenants
( yes, that's right, despite 6 month Fixed terms and Section 21 EHS - Govt's own survey shows average Tenancy length over 4 years ) are slow to increase rents.
But given there will be a maximum, it will only encourage - panic Landlords into using it.
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