The tenant fees ban has led to a huge surge in the number of people looking for properties following its introduction on June 1st, Rightmove has claimed.
Demand increased by 7% during May and June, seven times the normal uplift in tenants looking for property at this time of year, while in London demand increased by a staggering 13%.
May and June are usually a quiet time for letting agents as tenants put off moving home to take holidays, but the surge recorded by the portal would suggest many tenants have delaying their home moves for several months in order to avoid paying fees.
Rightmove says people have been “given a new impetus to move by the removal of most tenant fees, giving them a saving of hundreds of pounds in some cases”.
One agency, Chestertons, says it has seen the number of tenants registering with it increase by 17% since the ban began.
But while the ban may give with one hand, it may soon take away with the other. The unusual surge in demand, couple with ongoing problems with stock availability as more landlords quit the market, is already pushing up rents significantly.
Average asking rents outside London hit an all-time high of £817 a month in the second quarter of the year, while nationally rent rises have been accelerating and are increasing by 2.7%.
“The rise in rental prices may also mean some agents or landlords have attempted to raise rents to help compensate for a loss of tenant fees,” says Rightmove’s housing spokesperson Miles Shipside (left).
“More build to rent developments with more premium offerings and rents could also be adding to the average increase.”