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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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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