020 7625 9007

Study shows rents in Britain unaffected by tenant fees ban

Andrew Binstock
23.10.19

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.

Latest articles

Why 2020 is hailed as a good time to invest in property

Halifax’s latest house price index shows that UK house prices were 21% higher in November 2019 compared to a year ago The rising house...

House prices rise 3.6% in UK’s regeneration zones

Data compiled by CBRE shows that property located close to regeneration regions in the UK witnessed a price increase of an average 36% in...

Britain’s BTL market rebounds, figures show

The buy-to-let market in Britain in 2019 has picked up and gained momentum According to figures published by UK Finance this October,...

Current auction

Sign up for our newsletter

Back to Blog

REQUEST A FREE AUCTION VALUATION

Click here

Next Auction

12pm on the 12th February 2020

London Marriott Hotel Regents Park, 128 King Henry's Rd, London NW3 3ST

AHL PRIVATE TREATY SALES

WHY NOT TALK TO US ABOUT AVAILABLE, NOT FOR AUCTION INVESTMENTS AND DEVELOPMENTS

Click here

Contact us

Use the form below to get in touch