40 per cent of landlords have confirmed plans to raise rents should they be left to pick up the cost of tenant fees following the recent Autumn Statement.
Chancellor Phillip Hammond announced plans to ban letting agents from charging tenant fees, leaving it up to landlords to find the best deals and offset the costs. However, despite this being a bid to help tenant finances, the plan has backfired, with just one third of the respondents to a poll undertaken by online letting agent Upad stating that they will definitely not raise rents. This would ultimately lead to up to 2.6 million renters facing a permanent increase in cost.
Despite potential increased costs, 75 per cent of landlords cited no plans to sell their buy to let properties, proving the resilience of the sector even in the face of a plethora of new charges including the infamous 3 per cent stamp duty increase.
CEO and founder of Upad, James Davis, commented: ‘Once again a measure that has been brought in to punish landlords has come home to roost. Due to the chronic housing shortage we face in the UK, the lettings market is under immense pressure and this attempt to help potential first time buyers has actually done more harm than good. Instead of punishing landlords, we need to find ways to increase the supply of quality and affordable rental property to help house the millions of people who need it.
‘Frustratingly for everyone involved, this research suggests that landlords will be left with no choice but to further increase rent. This recent blow is just one of many that have hit landlords hard in 2016. The neglected lettings industry has a bulging balloon of tenants who are chasing too few rental properties and by continually kicking landlords, this situation is not going to improve.’
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