Rightmove has warned that the Government’s planned ban on rent in advance within its looming Renters’ Rights Bill will make it more difficult for some types of tenants to secure a home, particularly in high-demand areas.

The comments have come from the portal’s lettings expert Christian Balshen, who adds that despite the ‘wider implications’ of the Bill’s measures on tenants and landlords, he doesn’t expect it to impact market activity in the short term.

Balshen has highlighted these points within Rightmove’s latest Rental Trends Tracker index which reveals a market where, although activity is quietening down after the Spring market, supply remains out of kilter with demand and that average rents in both London and outside the capital have reached new record levels.

These are £2,698 per property a calendar month in London and £1,349 outside it.

New properties

These record rents come despite a boost in supply into the rental market. The number of new properties coming into the market in March was 11% ahead of the same period last year, and the overall number of rental homes available is 18% ahead of last year.

Also, the number of prospective tenants looking to move is 7% lower than at this time last year.
Supply is also improving and Rightmove says an increase in buy-to-let lending is the main reason. The latest snapshot from UK Finance shows that at the start of this year, the number of new buy-to-let loans is up by 32% compared to the start of last year.

Another factor behind less demand is a transition from some renters into the first-time buyer market.

Marc von Grundherr, Director at Benham & Reeves in London says: “We’ve seen a strong start to the year, with a surge in new listings entering the market, while tenant demand levels remain robust.

“The majority of landlords haven’t been particularly phased by the Renters’ Rights Bill. In essence, those providing good quality accommodation have little to worry about.”