Two million tenants will this year be hit with rent rises totalling a combined £46m a month according to an online lettings agency.
The impending ban on fees levied by agents on tenants, the increasing loss of mortgage interest tax relief, and regulatory changes have all combined to create a ‘perfect storm’ of financial pressures on landlords claims MakeUrMove.
As a result it says many agents “[have] no choice but to hike up tenants’ rents to cover their costs, piling the pressure on tenants already struggling with stagnant wages and the rising cost of living.”
It claims tenants will feel the impact most severely in London where half of landlords say they are planning to increase rents, piling extra pressure on tenants who are already paying an average monthly rent of £1,274.
In the North East and Scotland tenants will also be badly affected, with 46 and 45 percent respectively of landlords in these areas saying they will be forced to increase rents due to new laws and regulations.
Despite negative perceptions to the contrary, an overwhelming 97 per cent of the landlords surveyed by MakeUrMove believed it was important to keep tenants happy, suggesting rent increases are a last resort.
The increases will disproportionately affect younger generations, with figures from the agency showing the 58.9 per cent of tenants being aged from 18 to 34.
In addition to the implications on rents, the agency survey - of some 1,000 landlords - revealed that 10 per cent would “definitely” have to sell their property due to legislative changes.
MakeUrMove, which is 10 years old, describes itself as the UK’s first national online letting agency.