The number of tenants experiencing rent hikes has hit a six month high, lettings agents claim.
ARLA Propertymark’s Private Rented Sector Report for March showed 23% of tenants saw their rents increased last month, and attributed this to landlords trying to recoup losses from recent buy-to-let tax changes.
This is the highest level seen since September 2017 when 27% of landlords put rent costs up for tenants
However, this figure is down year-on-year from 25%.
The analysis, among 286 members, found demand and supply had also increased during March.
The number of prospective tenants registered per member branch increased from 61 in February to 66 last month, while the number of rental properties letting agents managed increased marginally from 175 to 179 over the same period.
Agency stock was however down annually from 183 on average in March 2017.
David Cox, chief executive of ARLA Propertymark, said: “This month’s results very much show a ‘business as usual’ period for the private rented sector, but this isn’t necessarily a good thing.
“Supply is still too low and almost a quarter of tenants are experiencing rent hikes every month as landlords try to recoup the costs lost trying to keep on top of all the recent legislative changes – including the recent energy efficiency deadline.
“For the last two decades, successive Governments have passed significant amounts of complex legislation for landlords, none of which have been properly policed or adequately enforced – but most of which cost decent landlords a lot of money.
“This is why we’re so supportive of the Government’s proposals to crack down on rogue agents, and more recently, plans to confiscate properties from criminal landlords.
“The announcements mark a sensible shift towards focusing on the root cause of the issues affecting the sector, rather than trying to find solutions to individual problems.
“This, coupled with greater rental stock is the key to fixing Britain’s broken rental sector.”
Comments (8)
Hi it’s your wicked money grabbing evil snivelling parasitic landlord, The_Maluka. I cry when I hear these unkind accusations, all the way to the bank. I am delighted with Osborne’s tax as it allows me as an unencumbered landlord to increase rents and make more profit – I am sure the Ferengi have a Rule of Acquisition for this. My only fear is that the government will repeal section 24 when it sees how high rents have risen, but hey ho lets make rent while the sun shines.
All those who are tempted to give me a thumbs down should first consult their dictionary and look up the word “Irony”.
This isn’t news from ARLA. What would be news is the level of rent rises? We’ve seen 10% in last 12 months and some leave the industry directly related to all the changes over the last couple of years wearing some landlords down and forecast at least another 5% in 2018. Any ban on a sensible referencing fee is going to get passed onto the tenants rent, which will cost them more in the long term. There are many landlords who will evacuate the market if CORBYN & CO get their way with lettings regulations, in the coming years.
‘No sh*t ‘ what do you mean a business passing on their increased costs to the customer, Who’d have thought that would happen !
( I don’t doubt for one minute the Government did, but were hoping their Revenue – raid would be hidden amongst all the other costs on Landlords e.g. Licensing )
Its true that not All of a Landlords costs will or can be passed on, but as much of them as possible, and progressively, will be. How else do you think any Business works ?
Does anyone blame supermarket managers when they find the price of shopping has gone up ?
There will be less money available for landlords to spend on property and I envisage that repair of defects will be prioritised but otherwise, generally improvements will be put off.
There is a ‘perfect storm’ in housing, not just massive shortages, but demand increasing and supply shrinking, the ‘water is up around the governments chest’ and rising. Most of the Financial and other attacks on the PRS ( you name it, Letting fee bans, deposit limits, Energy, Licensing,Tax etc etc ) Is reducing supply further, poking a bigger hole in a sinking ship.
ALL business need to be very worried about Section 24, because its a Money-grab by the government – is your Business next ?
The article does’nt say if the landlords are successful in passing on their increased costs to tenants. Frankly, it will blow up in their faces.
My rents are up by 15% since June 2015, when George Osborne launched his attack on landlords. Nothing has blown up in my face but my tenants are worse off. As I am facing a 25%+ tax levy by 2021, by which time Section 24 is fully implemented, my rent increases are likely to cover the costs. I gain nothing as all the extra money will go to the Exchequer. This is why it has been called been the ‘tenant tax.’ Maybe not all landlords can implement such increases – eg if their rents were already at market value or if their properties are in an area dominated by low-income tenants – but many of us can as we previously were really ‘unprofessional’ and kept our rents low. The Government will be pleased to see us ‘amateur’ landlords becoming more ‘professional’ in this way.
TOZ4 would you be able to elaborate on how you think this will blow up in their faces? I just can’t see that happening – if there’s too few dwellings available for an ever increasing tenant pool (300,000+ new ‘households’ are being created annually) where are people going to live if they refuse to pay an increased rent?
Tenants will simply be unable to afford the increased rents.
Sort of contradicts the previous headline. Average rents fall across the UK for first time in six years, suggesting this is more than a correction