Rents Rising in Wales
New legislation known as the Tenant Fee Ban is set to come into effect on 1st September 2019, and rents in Wales are already on the rise.
The Ban came into effect in England in June 2019.
The Ban came into effect in England in June 2019.
ARLA Propertymark has warned that the number of renters experiencing rent increases hit a record high in July. Research conducted by lettings platform Goodlord backed this up, finding that average rents in England and Wales increased from £901 in May (2019) to £907 in June (2019), with Wales having a steady rise of 5.8% since the start of the year.
Landlords Raising Rents
In an ARLA survey, 63% of agents reported that landlords raised rents in July, and that rents were up from a record 55% in June (and far higher than the 31% rise in July last year).
The survey found that supply has also suffered, with average stock per branch falling from 199 to 184 between June and July. Demand from prospective tenants fell, too, from 73 to 70 per branch over the same period.
David Cox, chief executive of ARLA Propertymark, said: “Following the Tenant Fees Act coming into force [in England] in June, rents have continued to rise, which we believed would happen.
“The fees agents have been banned from charging are still being paid for by tenants, however it’s now through their rent, rather than upfront costs.
“The fall in the number of properties available further increases competition in the market, which only pushes rents up or forces landlords to exit the market entirely.
“As the sector faces increased levels of legislation, it’s evident this is putting even more pressure on the industry.”
The survey found that supply has also suffered, with average stock per branch falling from 199 to 184 between June and July. Demand from prospective tenants fell, too, from 73 to 70 per branch over the same period.
David Cox, chief executive of ARLA Propertymark, said: “Following the Tenant Fees Act coming into force [in England] in June, rents have continued to rise, which we believed would happen.
“The fees agents have been banned from charging are still being paid for by tenants, however it’s now through their rent, rather than upfront costs.
“The fall in the number of properties available further increases competition in the market, which only pushes rents up or forces landlords to exit the market entirely.
“As the sector faces increased levels of legislation, it’s evident this is putting even more pressure on the industry.”
Rents Rising in Wales
Referencing and insurance provider Homelet also verify ARLA’s data and show that Welsh average rental values have increased by 4.3% in July 2019 compared to the same period in 2018, and are currently at £637 per month.
Our McCartan Rental Tracker for August is showing rents have actually dipped by -1.68%, though they are higher than the national average at £773pcm. This decrease could be due to a mixture of fewer student properties being marketed, but also a pre-ban rush to get as many tenancies started before the ban comes in as possible.
It will be interesting to watch over the next few months and as we head into winter if Swansea rental prices increase in line with what has already happened in England.
Sources: Property Industry Eye on English Fee Ban / HomeLet / Property Industry Eye on Rent Hikes
Our McCartan Rental Tracker for August is showing rents have actually dipped by -1.68%, though they are higher than the national average at £773pcm. This decrease could be due to a mixture of fewer student properties being marketed, but also a pre-ban rush to get as many tenancies started before the ban comes in as possible.
It will be interesting to watch over the next few months and as we head into winter if Swansea rental prices increase in line with what has already happened in England.
Sources: Property Industry Eye on English Fee Ban / HomeLet / Property Industry Eye on Rent Hikes
Image Source: HomeLet