Letting industry predictions that the tenant fees ban would push up rents are proving to be true, new and dramatic figures reveal.

ARLA Propertymark’s latest month report into the private rented sector shows that 64% of agent members it canvassed reported landlords increasing rents during August, the highest figure on record.

This is an increase from 63% during July and the fourth month in a row during which agents have reported similar figures.

ARLA says the rent hikes are largely being caused by landlords seeking to recoup the higher costs of running their properties caused by the fees ban, and the higher tax any landlord with a mortgage is now paying compared to a few years ago.

The number of homes coming onto the market to rent has also increased, but despite this supply is struggling to keep up with demand, which is another reason why landlords feel emboldened to increase their rent.

“Although it’s positive to see that supply has risen, it is nowhere near enough to counterbalance the rapid pace of rising rents, which have reached a new record high for the fourth month running,” says David Cox, Chief Executive of ARLA (left).

“Two thirds of agents reported landlords raising rents last month, which is a significant increase when compared with the two fifths of agents who witnessed rises in August last year.”

“Unfortunately, the impact of the Tenant Fees Act will continue to be felt by tenants, as in order to keep their heads above water landlords will need to continue increasing rents to cover the additional costs they now have to bear.”