4th
Jan 2017
Rents will continue on an upward trend due in part to the lack of necessary new builds and less properties in the PRS as some landlords have had enough of the government's anti landlord stance.
An association of letting agents recent poll shows that the banning of the letting agents' fees will have a major impact on the market.
It has been taken for granted by 80% of the respondents, that the abolition of their fees could mean that landlords will raise rents if agents raise their management charges.
David Cox MD of the association, said “The number of rent hikes reported by letting agents continued to decrease in November, and it’s a shame the ban on letting agent fees will have the opposite impact on rent prices when the measure comes into force.
He added: “The buy-to-let market is becoming less attractive for investors as the ban on fees, combined with the scrapping of mortgage interest relief and the stamp duty increase on second homes push costs up for landlords. So unfortunately, regardless of the uplift we saw in supply this month, we expect to see the number of properties available to rent fall next year.”
Simon Lambert, editor of This is Money, wrote on the website: “Landlords are always ripe for a kicking in some circles, so it should come as no surprise that they were swiftly painted as potential future villains in the ban on tenant fees.
“The theory on the news that chancellor Philip Hammond would ban tenant fees in his Autumn Statement was that buy-to-let owners would respond by passing on higher costs through rent rises.”
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