Agents divided over whether rents rose ahead of tenant fees ban

Agents are split over whether rents rose in the run-up to the tenant fees ban.

Separate research from ARLA Propertymark and Your Move has come up with differing perspectives of rental activity during May ahead of the introduction of the ban on June 1.

A poll of 324 members by ARLA Propertymark found that the number of tenants experiencing rent rises increased to the highest figure on record in May, with 45% of agents witnessing landlords increasing rents.

The ARLA survey found that rental supply dropped from 202 properties per member branch in April to 201 in May, while tenant demand increased from 64 to 69 potential renters per branch over the same period.

ARLA Propertymark attributed the increase in rents to landlords and agents preparing for the fees ban.

David Cox, chief executive of ARLA Propertymark, said: “As predicted, last month’s findings have shown an increase in rent prices in advance of the Tenant Fees Act coming into force.

“This rise in the number of tenants experiencing rent hikes is the highest we’ve ever had recorded, and rents will likely continue to rise as they must now cover the agent’s legitimate costs for setting up a tenancy.

“Competition for properties will be increasing as the supply of properties available to rent falls, but the demand from prospective tenants grows. This ultimately pushes up rent prices on well-managed properties and leaves tenants feeling the pinch.”

But data from Your Move branches suggests rental increases were almost imperceptible – up just 0.2% on a monthly and annual basis and down from 0.5% annual growth recorded in April.

Your Move data showed the average rent in England and Wales was £863 per month in May.

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