Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Landlords Increase Asking Rents After Renters’ Rights Act, Says Chestertons
More than a third of landlords have increased their asking rents in the months following the introduction of the Renters’ Rights Act, according to research from estate agent Chestertons. The firm’s latest quarterly report found a 36% annual increase in landlords raising their initial marketing prices.
Chestertons’ data suggests that some property owners are adjusting their pricing strategies to navigate new rules that prohibit accepting offers above the advertised rent. The report indicates that landlords are responding to the new regulatory framework by increasing the initial marketing price of their properties.
The research, which focuses on the London market, also highlights changes in tenant behaviour. Prospective tenants are conducting more extensive property searches, with portal enquiries outnumbering tenant applications by 1.99 times, compared to an average of 1.61 times in the previous six months. This suggests that tenants are shopping around more and seeking value in the market.
Despite the increase in asking rents, demand for rental properties in London remains strong. Enquiry levels indicate continued interest, and well-presented properties continue to let quickly, particularly during the summer period. Chestertons notes that demand continues to exceed supply across many parts of London.
The findings reflect broader adjustments in the buy-to-let sector as both landlords and tenants adapt to the new regulatory environment introduced by the Renters’ Rights Act.
Source: PropertyWire