Rent rises slow towards the end of 2016 as fewer increase prices
Fewer landlords in the UK have been asking new tenants to pay more for their rent in the last few months of the year, according to new reports. But most are planning to increase what they ask for in the new year, it has been found.
According to a report released by the Association of Residential Letting Agents (ARLA), in November, only 16 per cent of those who live in a rented property in the UK have seen the price of rent increase. This was a fall from the 18 per cent that was recorded in the month before, showing that landlords are starting to slow their activity towards the end of the year.
However, this is expected to be a short-lived hiatus for rent rises, with ARLA saying that it expects 80 per cent of landlords to be increasing the price of rent charged to tenants into 2017. This is in part down to the fact that many landlords will have to pass costs down to their tenants on the back of letting agent fees being banned from some point next year.
On top of this, demand should rise again in 2017, which should help to push the price of renting higher as well. In November, the demand fell ever so slightly, dropping to 32 prospective tenants per branch, but this is expected to climb again in 2017, and the fall is largely just down to the slowdown expected around Christmas.
In fact, some 53 per cent of agents who were surveyed said they would expect to see demand hit a higher level in 2017 than it has this year, which should help support higher income for landlords.
"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," said David Cox, ARLA managing director.ARLA managing director.