Since the tenant fee ban on 1st June 2019 the lettings market has been extremely buoyant with tenants looking to move from accommodation, they were previously willing to remain at.
This has been good news for landlords from the point of view of renting their properties with shorter void periods however there have been knock on effects.
The standard of the properties continues to improve, again another good thing as far as we are concerned with a clear message to landlords. If you keep on top of your property and invest in them you will be able to find tenants easily and with shorter void periods. A property that has a new kitchen/bathroom as well as new carpets and décor will not only have tenant’s eager to take it but also will achieve a higher rental figure.
So has the tenant fee ban been a winner for all parties? Well on the face of it yes but probably not for tenants in the long run as we have seen the largest increase in rental values for quite some time. Again, the property must be to the right standard to achieve the higher rents, but the statistics are showing considerable increases across the country.
by Richard Rabin FNAEA, MARLA, Diploma in Land & Property Valuation
15th Oct 2019
The following statement and facts from ARLA are shown below:
- The number of tenants experiencing rent rises rose marginally in August, with 64 per cent of agents witnessing landlords increasing them, compared to 63 per cent in July.
- Year-on-year, this figure is up from 35 per cent in August 2017, and 40 per cent in August 2018
“Although it’s positive to see that supply has risen, it is nowhere near enough to counterbalance the rapid pace of rising rents, which have reached a new record high for the fourth month running. Two-thirds of agents reported landlords raising rents last month, which is a significant increase when compared with the two-fifths of agents who witnessed rises in August last year.
“Unfortunately, the impact of the Tenant Fees Act will continue to be felt by tenants, as in order to keep their heads above water landlords will need to continue increasing rents to cover the additional costs they now have to bear.”