Landlords raise rents in response to increased legislation
“Holding steady” is the verdict the Association of Residential Letting Agents (ARLA) has given the rental sector – though they express pessimism for tenants, as landlords’ hike prices ahead of legislative changes.
Due to minimum energy efficiency standards, increases in tax relief and the upcoming ban on tenancy fees, agencies are anticipating higher costs to remain compliant and passing them onto tenants through increased rents.
March saw 23% of agent-managed rental properties increase rents, the highest rate since September.The entire private rental sector is experiencing upward movement, changes which are serving to increase rent levels. The number of rental properties each agency manages rose by 2.5% in March, while the number of applications by potential tenants to rent homes rose by 8%.
At the moment, rents have risen by 0.9% across the country – according to lettings insurance provider HomeLet. In London, this statistic is 1.5%. Homelet also found that rents are rising on an annual basis in every region except two – Wales and the North East of England.
David Cox, ARLA Chief Executive, said:
“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.”
According to the latest industry data, Britain’s buy-to-let industry is more popular than ever, with rental property investors in the UK hitting record highs of 2.5 million in the latest tax year.
If you are thinking about joining Britain’s burgeoning buy-to-let sector or are wanting to increase your portfolio of rental properties, Auction House London’s property auctions could be the perfect place to find your next buy-to-let investment.