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.”

Join our mailing list:

Leave a comment



Latest Comments

Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

view article
brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

view article
IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

view article
IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

view article
cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

view article
Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

view article
NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

view article
Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

view article
Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

view article
jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

view article
SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

view article

Related stories

More articles from Landlords