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Ban on Agency Fees – has this lead to rent rises?
Scotland is seeing stronger annual rent growth than England and Wales according to Your Move – but is it just down to a ban on letting agency fees?
Average residential rents across Scotland are now 2.2 per cent or £12 higher than twelve months ago, while across England and Wales monthly rents increased just 1.5 per cent.
The average rent in Scotland now stands at £537 per month, back in line with the record set in August this year. Rents climbed a moderate 0.3 per cent (equivalent to £1) in the month to October, recovering from a dip during September.
But taking a longer-term view, the rate of growth has cooled. Annual rent rises have eased from a 3.2 per cent increase over the year to October 2013.
“After years of consistency and incremental adjustments, rent rises quickened rapidly after the changes to lettings legislation made tenancy fees illegal. Instead of facing a one-off payment, tenants saw their monthly rents rise at a much accelerated pace. This market is only just starting to self-correct and steady” says Christine Campbell, regional managing director of Your Move.
“The introduction of any further lettings controls or restrictions by the Scottish government could further disrupt what was a healthy and extremely gradual rhythm of rent growth – to the detriment of thousands of renters. Complicating legislation would ostracise existing landlords and discourage new investment in the private rented sector, squeezing the supply of homes to let and simply adding to the current housing shortage” she claims.
