The implementation of the Tenant Fee Act on 1 June has changed the rental landscape and looks to have had a profound impact on the local market in June & July.
As tenants delayed moving until after the fee ban the number of properties to rent on the market has increased by 28% compared with June 2018. As a result, all applicants have more choice and so they are now looking at double the number of properties they would have before, and take longer to make a decision. We have seen local downward pressure on rent in properties where there are many similar properties on the market – we expect this to be temporary.
However, the larger number of properties inevitably means greater letting activity with 31% more lets agreed in the market overall (art Maxine Lester we increased by 47%).
Overall rents in the PE postcodes increased by 1.6% in the year. In CB postcodes the rents have decreased by 3.6%. We will wait a while before we call this a cooling in the rents in CB areas.
Interestingly the market for tenants from the US bases was very much slower than this time last year, which has had a knock-on downward rent pressure on some larger properties to ensure the properties are filled.
We had thought this would impact on June, but here we are nearing the end of July and there is still a higher volume of properties than normally, and we are seeing consistently high numbers of applicants and viewings, so it may take a little time to settle back to some normality! In the meantime, our advice to landlords marketing a property is to consider whether a slightly lower rent is more cost-effective than a longer void.
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