Rents will “unpreventably rise” because of fees ban, warns ARLA
Rents will "unpreventably rise" thanks to the government's proposed ban on letting agency fees levied on tenants and because of its mortgage interest tax relief restrictions starting next spring.
That's the view of David Cox, managing director of the Association of Residential Letting Agents.
"Just when rents were starting to stabilise, the Chancellor has thrown the biggest curve ball" he says.
Cox was commenting at the release of ARLA's latest market report which shows that fewer than one in five agents had seen a rise in rents in the year to October - the smallest figure since December last year.
Demand from prospective tenants also fell with 34 prospective tenants registering per branch - down from a year-high figure of 40 in September.
"This month's findings reflect seasonal expectations and show the market is slowing in the final quarter" says Cox.
"With fewer properties available to rent and a drop in the number of prospective tenants registering interest, tenants tend to stay in the current properties until the New Year arrives" he adds.
SOURCE: LETTING AGENT TODAY
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