There has been a sharp rise in the number of tenants experiencing rent rises following the introduction of the tenant fees ban, new data shows.
The average number of tenants experiencing rent hikes year-on-year for the month of June rose to the highest figure on record in June, according to ARLA Propertymark’s latest PRS report.
The trade body for letting agents reports that more than half - 55% - of its members witnessed landlords increasing rents in June
This is a 22% increase from May which was a previous record high.
Year-on-year, the number of tenants facing rent increases is up from 35% in June last year and 35% in the corresponding month a year earlier, fuelled in part by a widening supply-demand imbalance in the market.
Letting agents had an average of 199 properties under management per member branch in June, down from 201 in May.
The marginal decline may be due partly to the fact that the number of landlords exiting the market in June remained at four per branch. This stood at the same figure in June 2018.
Meanwhile, demand from prospective tenants increased marginally in June, with the number of house hunters registered per branch rising to 70 on average, compared to 69 in May.
David Cox, ARLA Propertymark chief executive, commented: “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.”
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....well there's a surprise. - NOT!!
BTW for future reference for all politicians night follows day.
Not one of those idiots will have any idea of what you are talking about!!!!!!
well ,when you have clowns running the country,you expect a circus!
Increased regulation, licensing, tenants fee ban and now rents are increasing?
I didn't see that one coming!
Lets hope it all comes back and bite them is the a---e
The end user pays, simple.
Had a house I let out fir 475 pcm 3 years ago just put it up again for 625 pcm and getting my had bitten off 10 enquires in less than 24 hours thanks Gideon Owe u one
Agreed....I cannot wait to increase my monthly rent to cover all the cash the Government very cleverly took away from me.
I run a business...As ANY business, when my costs go up, so do my prices....! It is just simple economics, so how come all the super First Class with Honours Economic graduates in Whitehall, just do NOT get it!
Graduates have the letters after their names, which mean F all, what they don't have is common sense .
The beauty of this is ALL landlords can put up rents, even if they don't have additional costs due to the abolition of tenant fees. Perhaps the Tories and SNP are actually on the Landlords' side after all? If so, imagine how much market rents would rise under Corbyn? On second thoughts.......
Indeed I was just speaking to a LA I have known for over 10 years and I conjectured how I would cover referencing costs etc.
I suggested I would pitch the rent for the first 6 months at a rate sufficient to cover the fees and then 6 months later issue a new 6 month AST or add an appendix to the original 6 month AST reducing the rent to what it would have been without my having to pay for Referencing fees.
The LA said why bother!.
Just keep the rent the SAME!!
So there you have it!!
Tenants who stay beyond 6 months will now be paying more in rent than they would have done had they paid upfront fees!
I guess nobody is surprised by this.
Of course this situation must also increase market rents.
So good news for LL not affected by the Tenant Fee Ban as they manage themselves but of course must be tempted to jack up their rents to match the new market rents caused by all the LL charging higher rents to cover tenant fees!!
So basically all tenants get clobbered for rent increases even though strictly speaking some LL don't need to!
I believe rents in Scotland have increased by 50% since their TFB.
It seems that there are very few circumstances where tenants are able to negotiate rent reductions or stabilised rents!
It does seem that rents are only going upward.
How long will it be before after all the additional costs that are being piled onto LL who then jack up rents to cover these imposed costs may be subjected to rent controls by the PTB who can no longer tolerate the size of rent increases.
There has to be a threshold at which tenant clamour against high rents will produce a political response to introduce rent controls.
When that day occurs it will be game over for the PRS.
This is more to do with section 24 kicking in not the fee ban.
Oh yes S24 is great for jacking up rents for LL that can survive or cope with S24!
There are LL currently being bankrupted by S24.
However nobody is prepared to divulge the figures for those LL forced to sell up by S24.
I reckon Govt would slap a D notice on any media outlet that tried to publish such information!
In fact the media NEVER mentions S24 at all.
Normally it just alludes to some vague tax changes rather than call it as for what it is a devastating tax on turnover NOT profit with LL being the only ones being taxed on turnover.
You never hear the media state this correctly..................funny that!!!!
But of course when you have leftwing media organisations like the BBC referring to S24 as a removal of generous tax reliefs rather than describing S24 correctly as a tax on turnover then there is little chance the public will understand the complete and utter iniquity that S24 is.
It is that & everything else combined to do as much damage as possible to LL. Tenants now not complying with anything and ignoring whatever you ask or tell them making letting impossible to manage, they now know they can do what they like, you have no authority. Before all those anti-Landlord regulations, there was some attempt to keep to rules, now they are free to overcrowd / sublet etc, they know you can do nothing but Council is waiting to Sanction you for not being in control of the Management that they prevent you from Managing.
turnover tax is being promoted by eu---france id threatening gafa tax at 3% of turnover
My agents informed me that they were going to charge me £200 fees per tenancy but increase the rent to cover this. They have but I don’t believe they should be as I’ve kept them slightly below market with no voids at all so I’ll be moving on to an agency with no tenant fees.
Your LA could tip you into HRT territory.
That could mean you losing about £2800 of Child Benefit!!
Never allow LA to determine what rents you wish to charge.
As the LL you know what the fine calculations are with your finances.
Nothing to see here.....
S24, No Tenants fees, legislation, more to come....
Obvious that rents go up. Alternative is losses and landlord sales of property, either way a negative for tenants.
Doesn't matter what business you are in, it will always be the end user that pays, so rents up, sorry good tenants but not our fault is it?
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