Rents to rise because of letting agent fee ban
The letting agent fee ban will reverse the recent slowdown in tenant rent hikes, according to a report from the Association of Residential Letting Agents.
It noted that the number of agents witnessing rent increases in October was at the lowest level seen since December last year, with just one in five agents reporting an increase. But the trade associaion warned that the trend won’t last long.
ARLA said that, given last week’s Autumn Statement news that letting agent fees will be banned, rents are projected to rise significantly.
David Cox, managing director of the Association of Residential Letting Agents (ARLA), said: “Just when rents were starting to stabilise, the Chancellor has thrown the biggest curve ball, meaning that rents will unpreventably rise when the tax changes and letting fees ban come into effect.
“In terms of supply and demand, this month’s findings reflect seasonal expectations and show the market is slowing in the final quarter. With fewer properties available to rent and a drop in the number of prospective tenants registering interest, tenants tend to stay in their current properties until the New Year arrives.”
In October, the number of rental properties managed per branch was 180, a significant decrease from September when there were a record 193 properties managed per branch, and the lowest level seen since June.