9th
Aug 2019
New figures show that when the Tenant Fees Ban Act was due to come into force on June 1st, there was a major rise in tenant demand for rented property.
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Between May and June there was an increase of 7% in tenant demand for new 'homes', this was a sevenfold increase to the four year average of just 1% in the same period.
The research from a major property website suggests that tenants are moving to new rented accommodation earlier than usual, as historically the peak in demand tails off in July and the start of the school holidays. It is thought that many tenants may also have put off moving until the tenants fees ban came into force, thereby making possible savings of hundreds of pounds.
In the capital the increase in tenant demand between May and June was at a high of 13%, more than three times the four year average for the same period of just 4%.
The ever decreasing rental stock shortage coupled with higher demand has pushed up rental prices.
The average national rental price, not including London, was the highest ever of £817 per month in April to June, the 2.7% annual rate shows the same steady increase over the last nine months.
The online commercial director and housing market analyst of the property portal, Miles Shipside, said: “A spike in tenants looking for a new place to live indicates some unsurprisingly held out until fees to start a new tenancy were removed by the government at the start of June.
“The ongoing shortage of quality stock could end up being exacerbated further by landlords whose tenants are now giving their notice so they can move on without paying fees, and some of those landlords then choosing to sell up rather than let it out again.
“Asking rents are at a new record, rising at nearly 3% a year as demand for quality properties outstrips supply. However, the rise in rental prices may also mean some agents or landlords have attempted to raise rents to help compensate for a loss of tenant fees. More build to rent developments with more premium offerings and rents could also be adding to the average increase.”
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