17^th Aug 2019

An association of lettings agents claims that its members have reported a record rise in number of rent increases.

From its June market's snapshot, the association says that the number of tenants who have faced rent rises that month, is the highest figure on record.

The market report found that 55% of agents reported back that their clients (landlords) had raised rents during June; this was 22% higher than in May which previously held the record.

Year on year comparisons in number of tenants having their rents increased was 31% higher than in June 2017, and 35% more than in June 2018.

At the same time members' branches in June managed on average, 199 properties whilst in May it stood at 201.

In June the number of prospective tenants slightly increased to 70 per branch from May's figure of 69.

David Cox of the association said: “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.”



News Archive »