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Rents on the Rise and ARLA Warns Things Can Only Get Worse

Rents on the rise, arla warn things will get worse

ARLA data indicates rents have risen by 7% in the last 12 months and they predict things are unlikely to improve for tenants with a ban on fees coming into effect in June. The data compiled from more than 9,500 UK letting agents in January also shows around three landlords per branch were quitting the business.

Landlord Costs Increasing

David Cox from ARLA is warning tenants that landlord costs are rising, and they need to be prepared for rent hikes going forward. In addition, there are now fewer landlords operating in the private rental sector, so demand is high.

“With demand increasing by 46 per cent from December, and rents starting to rise in response to all of the cost increases landlords have experienced over the last few years, tenants are in for a rough ride,” he says.

“With the Tenant Fees Act passing its final hurdle in the House of Commons and receiving Royal Assent this month, tenants will continue bearing the brunt, as agents and landlords start preparing for a post-tenant fees world.”

The ban on Letting Agent Fees

The forthcoming ban on letting agent fees is likely to save tenants around £300, but letting agents are almost certainly going to pass on their extra costs to landlords. In turn, these will force many landlords to increase their rents, so tenants can expect to pay one way or another.

Experts say rents are expected to rise by an average of £103 per year, but in some areas, they could increase by as much as £275 a year.

Landlords: are you planning to increase your rents this year, and if so, why? Tell us more in the comments or via our social media channels. We’d love to hear from you!

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