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Graham Awards


Fees Ban: record rent rises in response to Tenant Fees Act

The Association of Residential Lettings Agents says there has been a record number of rent increases reported by its members.

In a market snapshot for June - which was the third month in which the Tenant Fees Act banned fees levied on tenants by agents and landlords in England - ARLA says the number of tenants experiencing rent rises increased to the highest figure on record.

Some 55 per cent of agents saw landlord clients increasing rents during the month, a full 22 per cent up on the previous four weeks which itself had been a previous record high. 


Year-on-year, the number of tenants facing rent increases is up from 31 per cent in June 2017, and 35 per cent in June 2018.

Meanwhile letting agents had an average of 199 properties under management per member branch in June, a decrease from 201 in May.

Demand from prospective tenants also increased marginally in June, with the number of house hunters registered per branch rising to 70 on average, compared to 69 in May.

Year-on-year, demand has fallen, from 71 tenant house hunters registered per branch in June 2018.

In June this year, the number of landlords exiting the market remained at four per branch. This stood at the same figure in June 2018.

“Unsurprisingly, rent costs hit a record high in June as tenants suffered the impact of the tenant fee ban. Ever since the government proposed the ban, we warned that tenants would continue to pay the same amount, but the cost would be passed onto tenants through increased rents, rather than upfront costs” notes David Cox, ARLA Propertymark chief executive. 

“In addition to the repercussions of the Tenant Fees Act, the proposed abolition of Section 21, coupled with the Mayor of London’s recent call for rent controls, will only cause the sector to shrink further. In turn this will increase pressure on the sector because it will discourage new landlords from investing in the market, causing rents to rise for tenants as less rental accommodation is available.”

  • icon

    The perfect storm created to garner the votes of generation rent.

    Algarve  Investor

    I'd imagine most of generation rent wouldn't be voting Tory anyway, if it's anything like the last election where the youth vote went heavily towards Labour, so all seems a bit redundant and pointless anyway.

  • SCN Lettings

    Generation Rent and Shelter should have been more careful about what they wished for. In 17 years of being a landlord and 7 as an agent I have never seen such a shortage of properties locally at such high rents. Indeed a " perfect storm"

  • Angus Shield

    As Isaac Newton stated in his third law "For every action, there is an equal and opposite reaction" this is the consequence!

    Should have heeded Isaac Newtons first law "A body at rest will remain at rest, and a body in motion will remain in motion unless it is acted upon by an external force"!!

    So stop fiddling with matters you do not professionally undertake meddling politicians and Charities!!!

  • icon

    It is totally obvious that there are costs associated with the lettings process, new licencing etc and that these have to be factored into rent if they cannot be identified as separates. While this helps protect Tenants because they only have to judge one number, it seems likely to penalise the Tenant who stays longer. It is divergent from the serviced apartment scenario, where for example a cleaning fee may be identified as a separate, the correct way to identify changeover costs. The 'churn' and the 'stay' are different events incurring different costs and the one-size-fits-all rent may prevent a small % of rogue letting agents or rogue LLs, but is a regression for most Ts, LLs and LAs.

  • Paul Singleton

    Dear Polly (Shelter),
    I wonder if you would be kind enough to respond to the fact that with your meddling, rents are now going up (as predicted) for your precious tenants. Do you accept this is your fault and that the said tenants would actually have been better off prior to your meddling? Secondly do you accept that some letting agents have been forced to reduce their workforce and are now providing a less efficient service for their tenants. I look forwards to your response. Paul


    They will do what they always do and blame the landlords. They will claim (ridiculously) that landlords should just take on the added cost and not put rents up, as if that's a viable option and the world actually works that way.

  • Paul Smithson

    No pets and if a tenant loses a key we send them to the locksmith and email locksmith to cut one....I believe the locksmith now charges double for security keys, I hope he’s taking me on holiday at Christmas 😀😀

    S l
    • S l
    • 01 August 2019 20:46 PM

    I really should do the same as the tenant are so unappreciative even when we charge £10 to open door considering that we have to go to them pronto come what may. Still complaint too expensive and should do for free??????? What nerve


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