The pace at which rents are rising is set to triple next year. In the latest market survey by the Association of Residential Letting Agents, four out of five agents say that following the Autumn statement (whereby Chancellor Phillip Hammond said he was to ban agents’ fees levied on tenants) they expect rents to increase in the next 12 months.
The chief executive of property investment platform ‘Landbay’ is predicting that rental inflation, which has slowed this year will see a spurt next year with rents rising 3% in 12 months. This is almost triple this year’s inflation rate.
Landbay’s analysis states that across the UK rents rose by 1.12% in 2016 to November, slowing from 2.34% by the same point in 2015. This meant that the average rent being paid by tenants renting from private landlords hit a record £1,188 per calendar month, up from £1,177 at the turn of the year.
ARLA’s Private Rental Sector report for November shows the number of tenants experiencing rent increases continued to decrease, at 16%, a decrease from 18% in October. However, following the Chancellor’s announcement to Ban letting agent fees for tenants during his Autumn Statement 80% of agents expect to see rent hikes in 2017.