ARLA Propertymark has said the Tenant Fees Ban pushed rent prices to the highest on record in June – with more than half of agents seeing landlords make increases.
This was a 22% increase on figures for May – which was the previous high.
Unsurprisingly, rent costs hit a record high in June, as tenants suffered the impact of the 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,” said ARLA Propertymark chief executive David Cox.
ARLA’s PRS report for June shows the number of tenants experiencing rent rises increased to the highest figure on record in June, with more than half (55%) of agents witnessing landlords imposing price hikes.
Key stats from the report include:
- Year-on-year, the number of tenants facing rent increases is up from 31% in June 2017, and from 35% in June 2018
- Letting agents had an average of 199 properties under management per member branch in June – down from 201 in May
- Demand from prospective tenants also increased marginally in June, with the number of house hunters registered per branch rising to 70 on average compared to 69 in May
- Year-on-year demand has fallen from 71 house hunters registered per branch in June 2018
There was, however, a standstill in the number of landlords exiting the market in June, which stayed at four per branch – the same as in June last year.
“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,” said Cox.
“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.”