In less than 24 hours the tenant fees ban goes live in England after nearly two years of horse trading inside and outside parliament, but its predicted and likely disastrous effect on the private rental sector is already being felt, it has been claimed.
ARLA Propertymark says that in April its members recorded the highest number of buy-to-let landlords exiting the market for over a year as well as increasing rents and a drop in the number of properties available to let.
Tenant fees ban
This together with the looming ban on Section 21 ‘no excuse’ evictions, is “forcing landlords to either increase rents or leave the market altogether”, says ARLA’s Chief Executive David Cox (left).
“As supply of rental accommodation falls further, tenants will only be faced with more competition for properties, pushing up rent prices on good-quality, well-managed properties and decreasing tenants’ ability to negotiate rent reductions.”
ARLA says the number of landlords selling up properties increased during April from four to five per branch, and that a third of landlords increased their rent, up from a quarter a year ago. The ratio of tenants successfully negotiating rent reductions reduced too, from 2.9% in March to 1.9% in April.
“In order to remain profitable, landlords will increase rents to cover the additional fees they are now faced with and as a result, tenants will continue to feel the burn,” says Cox