More tenants are seeing their rent increase
The number of tenants experiencing rent rises increased to the highest figure on record in July, ARLA Propertymark has revealed.
Some two thirds (63%) of agents have witnessed landlords increasing them, a 15% rise from June which was a previous record high.
David Cox, ARLA Propertymark chief executive, said: “Following the Tenant Fees Act coming into force in June, rents have continued to rise, which we believed would happen.
“The fees agents have been banned from charging are still being paid for by tenants, however it’s now through their rent, rather than upfront costs.
“The fall in the number of properties available further increases competition in the market, which only pushes rents up or forces landlords to exit the market entirely. As the sector faces increased levels of legislation, it’s evident this is putting even more pressure on the industry.”
Year-on-year, the number of tenants facing rent increases is up from 31% in July 2018.
Letting agents had an average of 184 properties under management per member branch in July, down from 199 in June.
Demand also increased in July, with the number of prospective tenants registered on average per branch rising to 733, compared to 70 in June.
Year-on-year, demand has fallen, from 79 house hunters registered per branch in July 2018.
In July, the number of landlords exiting the market remained at four per branch, the same from the same period last year.