ARLA: Letting agent fee ban will speed up rent hikes

ARLA: Letting agent fee ban will speed up rent hikes

New data from the Association of Residential Letting Agents has shown that, during October, the number of agents witnessing rent increases was the lowest since December last year – but it won’t last long.

According to ARLA, the number of agents witnessing rent hikes for tenants was at the lowest level since December 2015, with just one in five (18%) agents reporting increase in October. This is down six per cent from September when 24% of agents saw rent increases, and fourteen per cent from March when a record 32% of agents saw price rises.

However, given last week’s Autumn Statement news that letting agent fees will be banned, this is unlikely to last, with rents projected to rise significantly.

Percentage of agents witnessing rent hikes for tenants:


Supply of rental housing

In October, the number of rental properties managed per branch was 180, a significant decrease from September when there were a record 193 properties managed per branch. This is also the lowest level seen since June, when agents managed 176 properties on average.
 
Demand for rental properties

Demand from prospective tenants fell in October, with 34 prospective tenants registered per letting agent branch, compared to 40 in September, which was the highest number this year.
 
David Cox, Managing Director, Association of Residential Letting Agents (ARLA), said: “Just when rents were starting to stabilise, the Chancellor has thrown the biggest curve ball, meaning that rents will unpreventably rise when the tax changes and letting fees ban come into effect. In terms of supply and demand, this month’s findings reflect seasonal expectations and show the market is slowing in the final quarter. With fewer properties available to rent and a drop in the number of prospective tenants registering interest, tenants tend to stay in their current properties until the New Year arrives.”

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Latest Comments

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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