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Research carried out by the Association of Letting Agents (ARLA) shows that increasing numbers of landlords are abandoning rent increases. The proportion of landlords hiking rents on their properties fell to 24% last month, which was the lowest level this year.
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Increase in Available Rental Properties
Experts believe the drop has been caused by an increase in the number of available rental properties, which is partly due to the increase in stamp duty land tax rules, which came into effect in April. There was a surge in property purchases by landlords before the rule kicked in, as landlords sought to avoid the extra 3% surcharge.
Rental Properties Harder to Let
The glut of rental properties has made it harder to let, as tenants now have a choice and can afford to pick and choose where they live. Consequently, landlords in some areas have not increased rents, as they prefer to have the property occupied at a lower rent than stood empty at a higher rent.
“It’s good to see less landlords hiking rents this month, but 24 per cent is still too high,” says David Cox from ARLA.
“The cost of renting is already high in many parts of the country and until the Government converts its pledges and promises into bricks and mortar, we won’t see renters reach a position where they’re able to save to get on the housing ladder. It will be interesting to see how this is tackled in the upcoming Autumn Statement.”
