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Rent rises predicted in 2017, according to majority of letting agents

Posted on by within Property News

80% of letting agents expect rent rises in 2017 when a proposed ban on letting agents' fees comes into force. 

Chancellor Philip Hammond announced in November's Autumn Statement that letting agents' fees for tenants would be banned 'as soon as possible'.  

Rent rises predicted in 2017However, fewer tenants experienced rent increases in the month of November than when compared with October.  

Tenant demand fell in November, however, over half of letting agents expect to see demand rise in 2017.  

Landlords have had to swallow many tax and regulation changes in the recent years, including a 3% increase in stamp duty on second homes, the abolition of the wear and tear allowance, and the changes to mortgage interest tax relief, which will be phased in from next year.  

These measures have been introduced by the government in an attempt to slow growth in the buy-to-let market and make it easier for first-time buyers to get a foothold on the property ladder.  

Costs are increasing for landlords, and this may lead to a fall in the number of rental properties on the market. If potential investors decide not to invest in the buy-to-let market, this will mean fewer rental options for tenants. As rental demand continues to be high, this could push rents up even further for tenants.  

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