Less tenants in the UK saw rental rises during November, according to the latest research released by the Association of Residential Lettings Agents.
However, eight in ten letting agents believe that rents will rise during 2017.
In total, 16% of tenants saw rent increases during the last month, down from the 18% recorded during October. However, the Association feels that following the Chancellor’s announcement that letting agent fees are to be banned, many landlords will up their rents accordingly.
80% of their members expect to see a hike in rents during 2017.
What’s more, the report indicates that demand from would-be tenants fell again during November, as the rental market continues to cool before Christmas. There were 32 potential tenants per branch during to month, in comparison to 34 in November. 53% of agents expect demand to rise early in the new year.
The report also shows that the number of rental properties managed per branch was 185-a rise from the 180 seen in October. This was however lower than the 193 seen during September.
It is widely expected the number of investors taking out landlord insurance on a property will drop in 2017, given the raft of tax changes impacting on landlords introduced in the last year.
David Cox, managing director of the Association of Residential Letting Agents, noted: ‘The number of rent hikes reported by letting agents continued to decrease in November, and it’s a shame the ban on letting agent fees will have the opposite impact on rent prices when the measure comes into force.’
‘The buy to let market is becoming less attractive for investors as the ban on fees, combined with the scrapping of mortgage interest relief and the stamp duty increase on second homes push costs up for landlords. So unfortunately, regardless of the uplift we saw in supply this month, we expect to see the number of properties available to rent fall next year,’ Mr Cox added.