18^th May 2019

A new report from an inventory service provider, warns agents and landlords that after June 1st there will be a steep rise in tenant activity.

The report says that as a result of the tenants' fees ban and the cap on deposits coming into force next month, many tenants will be holding off moving to another rental home until June 1st.

The inventory service provider's report follows the DPS's (The Deposit Protection Scheme) latest research that states many tenants will wait until after June 1st when the Tenant Fees Act is introduced.

The deposit scheme's research found that in the first three months this year, the average rent dropped down to £757 across England; this has fallen by £5 - 0.64% from 2018's Q4 and by £14 - 1.87% in the first quarter of 2018.

The DPS said the drop was because of various economic factors and a term of 'tenant inactivity' before the fees ban.

Nick Lyons, CEO and Founder of the firm, said: "It's no surprise to see shrewd tenants delaying moves until after the fees ban and deposit caps are introduced on June 1.

"The upfront cost of moving between rental homes can be high - particularly in London and the South East - so renters will do anything they can to keep costs down, even if that means putting their move on hold for a few months."

He continued: "Tenants are likely to have continued searching for properties over the last few months and will be keen to push their moves through as quickly as possible so they can be settled in their new property for the majority of the summer months."

The firm also mentions that with the five week deposit cap landlords should be even more vigilant when providing an inventory for new tenants, so as to make sure that they protect their investment as much as possible.

He added: "Inventory reports confirm the condition of a rental property at the beginning and end of a tenancy. The presence of this document provides landlords with the evidence to make fair deductions for damage and lost items.

"With the fees ban likely to reduce average deposits in some areas, it’s vital that landlords have peace of mind that their property is protected by an inventory that can support them in the event they need to make deposit deductions."

He concluded: “Taking this approach can help to save agents time and money, allowing them to become more efficient and dedicate more resource to providing a personal service to clients."


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