More than a third of landlords have raised their asking rents in the months since the Renters' Rights Act came into force, new research from estate agent Chestertons reveals. The firm's latest quarterly report highlights a 36% annual increase in landlords elevating their initial marketing prices, indicating a strategic shift to navigate the new regulations.
The legislative changes, which include a prohibition on accepting offers above the advertised rent, appear to be prompting landlords to build in more flexibility from the outset. Katinka Hill, Head of Lettings at Chestertons, commented on the trend, stating that landlords are increasing initial marketing prices to give themselves 'some leeway' under the new rules. This adjustment comes amidst ongoing shifts in the broader property market, where supply constraints continue to impact both rental and sales sectors across the UK.
In response to these higher asking prices, prospective tenants are reportedly becoming more discerning and widening their property searches. Chestertons' data, which primarily focuses on the London market, shows that portal enquiries now outnumber tenant applications by 1.99 times, a notable rise from the average of 1.61 times observed over the preceding six months. This suggests that renters are 'shopping around more' to find better value in a competitive market, according to Hill.
Despite the increases in asking rents and the more extensive tenant searches, demand for rental properties, particularly in London, remains robust. Well-presented properties continue to be let quickly, especially during the busy summer period. This indicates that while the market is adapting to the new regulatory environment, the underlying demand continues to outstrip supply in many areas, creating ongoing challenges for renters.
The adjustments in landlord behaviour and tenant search patterns reflect a broader evolution within the buy-to-let sector. As both landlords and tenants become more accustomed to the framework of the Renters' Rights Act, further adaptations are anticipated. The interplay between new legislation, persistent demand, and limited supply will continue to shape the rental market dynamics across the UK.