14-Month High in Landlord Rent Rises

The number of letting agents reporting landlords increasing rent costs has reached a 14-month high, according to new figures from the Association of Residential Letting Agents.

The research has shown that the number of agents who saw landlords increase rent costs for tenants reached 31 per cent in June. This marks growth from the 27 per cent recorded the previous month, and a 14-month high.

The report also found that the number of properties managed per member branch saw marginal growth in June to 190 from 189 in May. However, annually these figures were more significant, with letting agents managing just 176 properties on average last June.

It was discovered in the research that 83 per cent of letting agents would prefer that the Government scrap plans to ban letting agent fees. 73 per cent would instead prefer the Government to focus on improving enforcement for rogue landlords. This is backed up by the 62 per cent who wish to see increased regulation in the sector.

26 per cent of letting agents are of the opinion that the Government should provide tax breaks in order to encourage long term tenancies.

ARLA Propertymark chief executive, David Cox, said: ‘With the cost of living on the rise and inflationary pressures tightening, the last thing tenants need is for their rents to continue rising. However, the fact that supply looks to be rising, while demand has dropped slightly indicates a move in the right direction for the market. Ultimately, to stop rent prices from increasing too much, we need to find the balance between supply and demand. While there’s still a long way to go, if the supply of rental stock continues to increase, and the number of tenants searching for new properties drops off, we’ll be making headway towards achieving this.’

CEO of CreditLadder, Sheraz Dar, added: ‘Many people warned the government that its latest tax increases for landlords, and changes to stamp duty, would push up rents and the ARLA figures show this appears to be taking place. This is going to put even more pressure on many tenants’ disposable income and make it more difficult for tenants to save up to buy their first home. We need more properties to be made available to rent in the UK and reduce pressure on rents, but the government seems very keen to stop private landlords helping achieve this.’