Despite warnings being made that rents were set to rise when the government’s ban on tenancy fees came into force, there is little evidence to show the cost of rent has increased.
On the contrary, research shows that the cost of renting in the UK has remained steady, with just a 1% increase during the last year.
The tenant fees ban came into force on 1 June 2019, prohibiting any charges being applied to tenants and their guarantors. Under the new legislation, if a tenancy agreement is renewed or started, the tenant can only be charged fees for the following:
- • Late payment of rent
- • Lost keys or fobs
- • Ending the tenancy early
- • Changing or assigning a tenancy
Under the new law, fees cannot be charge to the tenant for:
- • Referencing
- • Administration
- • Credit and immigration checks
In the wake of the recently introduced new law, data shows that rents have remained unchanged. As Matt Hutchinson, communications director for SpareRoom, commented:
“Despite repeated warnings that the tenancy fees ban would drive rents up, so far that’s not been the case. Even with July, August and September being the busiest months for new tenancies we haven’t seen a significant bump in rents. It’s still early days, but, for now, tenants will be breathing a sigh of relief.”
One potential concern landlords had in relation to having to increase rents to cover the cost of the tenant fee ban, was that they would face longer void periods due to hiked rental costs.
However, the fact that the cost of renting has remained relatively steady despite of tenant fees ban, means that landlords have less to worry in terms of longer void periods due to inflated rental charges.
This positive climate that strives to make the letting industry fair for both tenants and landlords, means now is a good time to invest in buy to let property in Britain.
Purchasing a BTL investment at auction can be the perfect way to snap up the ideal property. Take a look at the properties listed for our forthcoming property auction in London.
12pm on the 12th February 2020
London Marriott Hotel Regents Park, 128 King Henry's Rd, London NW3 3ST