Extract from Redwood Financial’s Property Review October 2019
The latest figures from the Association of Residential Letting Agents (ARLA) show the cost of renting rose for the third month in a row, to reach the highest figure on record. The July figures saw almost two thirds (63%) of agents seeing landlords increasing rents, which is a 15% increase from the previous record high in June.
The figures also show that the number of tenants experiencing rent increases was up 31% compared to July 2018, with tenants in the West Midlands worst affected, where 86% experienced a rent increase.
David Cox, Chief Executive of ARLA said: “Following the Tenant Fees Act coming into force in June, rents have continued to rise, which we believed would happen. The fees agents have been banned from charging are still being paid for by tenants, however, it’s now through their rent, rather than upfront costs.”
He also commented that a fall in the number of properties available has increased competition and increased levels of legislation have added more pressure on landlords, resulting in more leaving the industry or feeling the need to increase rents.