Landlords have already started to raise their asking rents just months after the introduction of the Renters’ Rights Act, Chestertons claims.

The estate agent’s latest quarterly report found that more than a third of landlords lifted asking rents in the first months of the Renters’ Rights Act.

The research suggests that one of the reasons for this is that landlords are looking to circumvent rules that ban taking offers above the asking rent.

Chestertons said there has been a 36% annual increase in landlords lifting their initial prices to test the market.

Landlords are increasing the initial marketing price of their properties to give themselves some leeway.

As a result of the new legislation and rent increases, Chestertons suggests prospective tenants are shopping around more.

Portal enquiries outnumbered tenant applications by 1.99 times compared with an average of 1.61 times in the previous six months.

Looking for leeway

Katinka Hill, Head of Lettings at Chestertons, (pictured) says: “Landlords have reacted to the Act by increasing the initial marketing price of their properties to give themselves some leeway as they now cannot accept over the asking rent.

“However, tenant demand across London continues to be resilient, with high levels of enquiries demonstrating that people are still actively looking to move.

“We’re also seeing tenants take more time to compare properties and make informed decisions, resulting in a more considered search process. For landlords, the focus is increasingly on getting the asking price right from the outset to attracts the strongest level of interest.”

Landlords have reacted to the Act by increasing the initial marketing price of their properties as they now cannot accept over the asking rent.”

“Prospective tenants are shopping around more, sending enquiries for more properties they are seeing online – shown in the recent disparity between portal enquiries and applicant registrations – as they are looking for value in the market to trigger a move.”

Hill says well-presented properties continue to let quickly, adding: “Overall, we’re seeing a market that is settling into the new legislation, with demand continuing to outweigh supply across many parts of London, especially as we are mid summer.

“As confidence in the new framework grows, we expect both landlords and tenants to become even more comfortable navigating the changing landscape.”