Tenancy demand shoots up as renters look to avoid fees post-ban

The uplift in tenancy demand in the month before the fees ban was implemented was seven times the norm, as tenants looked to move after June 1 and avoid paying fees.

Rightmove has reported that demand from tenants looking for a new place is normally muted at this time of year

However, it rose 7% between May and June, compared with the previous four-year average of just 1%.

In London, the uplift was 13%, compared with a four-year average of 4%.

Rightmove says that agents are reporting an increase in enquiries from tenants looking to move, now that fees have been removed.

Asking rents outside London hit an all-time high of £817 a month in the second quarter of this year, says Rightmove.

In London the average rent was £2,059 per month – a fall of some £40 from the first quarter of the year, but up 3% on the second quarter of last year.

Melanie Howarth, branch manager at Northwood in Doncaster, said: “We’ve seen a massive increase in enquiries and we’re having to do everything differently now, such as arranging to meet lots of tenants at a property all at once.

“We’ve seen such an influx of interest, I’d say every property is seeing double, maybe triple, the levels of interest that it would have received prior to the tenant fee ban being introduced as it’s now cheaper for tenants to move around from property to property.”

Richard Davies, head of lettings at London-based Chestertons, said: “We’ve seen a 17% increase in the number of tenants registering to view properties since the tenant fee ban came in on June 1 compared to the same time last year.

“This spike in demand from tenants has meant that there has been a lot more competition for rental properties, and tenants are often paying above asking price to secure their first-choice property.

“Paying over asking price for rental properties in the peak summer lettings season is not too unusual in London, but we have noticed that tenants are more prepared to do so since the fee ban came in, potentially because they feel they are saving money on additional fees so can afford to spend a little more on their monthly rent to secure the right property.”

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4 Comments

  1. Anthony Kerrigan

    Not sure I agree. Most applicants don’t know anything has changed.

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    1. jeremy1960

      Many do and the lack of commitment and sodding us around is increasing daily.

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    2. CoastLet

      I agree….most tenants seem very surprised when we tell them there are no longer any fees to pay!

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  2. DASH94

    Our viewings diary went bonkers in June.   By the end of the month, we’d conducted more than 2.5 times the normal average  number of viewings.    Difficult to be certain  yet how that has converted to actual business, but we’ve never been so busy.

    Most applicants aren’t aware of the TFB though    The main people that seem to know are existing tenants who think they can’t be charged for renewals

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