RENTAL GROWTH IS HEATING UP

According to the Office for National Statistics annual rental price growth across the UK from January to May 2019 is at it's highest in 18 months, at 1.3%.  The South West is listed in the top three regions for growth, with rents rising by 2.0% in the same period.

In the run up to the Tenant Fee Ban, which came into play on 1st June 2019, landlords and agencies across the UK were implementing the change of payment for many essential services for tenancy preparation, such as tenant referencing, credit checks, right to rent checks, legal agreements, inventory preparations and check-in reports - meaning that landlords needed to recoup this additional outlay, many increasing their rents to cover the additional costs.

Whilst market conditions ultimately influence the asking rents, with a whole of market change such as this one which the government has imposed from the start of June, it was bound to cause this initial hike in rental prices, as it did in Scotland when the ban came in there in 2012.  It will be interesting to see whether rents continue to rise now that the ban is in place, or whether things will settle down.  Watch this space! 

If you would like more information on the tenant fee ban or would like a valuation for your rental property, please get in touch with our lettings team on 020 8866 2727 or click the link!