26^th Jan 2018

The ONS (Office for National Statistics) has released figures that show UK rents for private tenants had increased by 1.2% over the twelve months up to the end of December 2017. The ONS' yearly figures started in January 2012 and last year's increase was the lowest since the records began.

In England private tenants on average 'coped' with a 1.3% rent increase, Welsh tenants had a 1.7% rise and Scotland only had a 0.4% rental increase in 2017.

In 2017 London's PRS rental increase was a lowly 0.4% which is well below the average UK rise.

Paul Sloan, operations director of a leading lettings agent, said: "Rents are rising but at a slower rate than before. This is good for both landlords and tenants. A rise of between 1.3% and 1.4% in England is sustainable.

"Landlords have got some capital growth and will benefit from higher yields but it is also good news for tenants that increases are modest – at least until the proposed ban on tenant fees are introduced."

It has just been announced by the government that the letting agents' fees ban will not be introduced until the spring of 2019 which could be an over optimistic timescale. Obviously agents will not wish to lose the extra revenues from tenant fees, and many experts are saying that they may have to compensate their losses by charging landlords extra surcharges in 'service' fees.

Sloan believes that if landlords have higher management fees to contend with then it is more than likely that tenants will end up paying them.

He added: “Wages are likely to be rising by more than rents and realistically, landlords are unlikely to put up rents on an existing tenancy by 1%.

"If they have good tenants, they are likely to wait and increase it by 5% later down the line, or just increase the amount for any new tenancies."

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