Tenants flock to apply as soon as fees ban started – but rents rise as landlords say ‘enough’

The number of tenancy applications rose ‘dramatically’ as soon as the fees ban came into force in England, Belvoir has reported.

The franchise chain said that the first rise was in June, but continued into July, with tenancy applications up 32% when compared with July of last year.

Belvoir has also reported that in the second quarter of this year, rents rose across England, Wales and Scotland by an average of just over 4.5% compared with the same period in 2018.

CEO Dorian Gonsalves said that Belvoir offices reported high demand, and regulatory changes leading to reductions in portfolio sizes as the main reasons for rent rises amid a shortage of properties.

Gonsalves said: “The majority of Belvoir agents predict further rental increases.”

He said: “As uncertainty over Brexit continues, and tenant demand increases, we hope that the Government will consider a more joined-up and holistic approach to the rental sector, which will help to increase the supply of properties introduced to the market.”

Gonsalves said the situation was particularly severe in parts of London, with serious stock shortages.

He went on: “During the past 11 years average London rents have increased by about 4.8% per year.

“This increase is ahead of average inflation of 3%, but, being a capital city with affluent individuals seeking accommodation, and a market that is experiencing stock shortages, the rise is inevitable.

“Outside London, average monthly rents range from £629 and £638 in the north-east and north-west respectively, £771 in East Anglia and £783 in the west midlands, through to £1,155 in the south-east.”

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5 Comments

  1. seenitall

    Bears & woods.

    Catholic & Pope

    MP’s &   self-serving, two faced, untrustworthy leaches.

    Report
  2. Anonymous Coward

    My favourite – being turned down for a 6 month tenancy because the landlord didn’t want to pay two lots of agency fees.

    Thanks to HM Government I am now stuck with a twelve month rental.

    Yay!

    Report
    1. seenitall

      AC  – yes – we are now only issuing a 12 mth tenancies as a min as thats what the landlords want.   Doing more 18mths as well now.  Rents have all gone up as well as the fee ban has made it only cost nuetral to landlords over a 12 mth period.
       But I thought the Govt said after their survey that tenants wanted longer lets?   the govt cant be wrong can it?
      I thought the Govt said that the fee ban would help tenants?  The Govt surely must have thought about why they are legislating and the consequences?
       

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      1. Snyper

        It’s almost as if they should have asked industry experts for their expert opinions on proposed changes to legislation isn’t it? Can’t be wrong…

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        1. Tee Jay Bee

          Nobody trusts experts these days

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