Rent rises likely in 2017, say most letting agents

Written on 21 December 2016 by Alistair Boscawen in Property News

The overwhelming majority of letting agents say rents will rise in London next year when a proposed ban on letting agents’ fees comes into force.

Rent rises likely in 2017, say most letting agentsChancellor Philip Hammond’s announcement in November’s Autumn Statement that letting agents’ fees for tenants would be banned ‘as soon as possible’ led to speculation that these costs might still be passed on to tenants in the form of higher rents.

Now The Association of Residential Letting Agents’ most recent market survey says that four in five letting agents think rents will increase over the next 12 months.

This remains to be seen, but most of the changes affecting landlords have already been introduced. Most notably the extra 3% surcharge on stamp duty for buy-to-let investors, which affects those looking to invest in areas like Belgravia.

However, the sway of prime central London property has not deterred buyers and investors. Overseas investors buying buy-to-let property in the luxury market have remained active since the EU referendum, taking advantage of the fall in value of the pound.

We expect rental demand to continue next year in prime areas like Belgravia. Buy-to-let investors remain confident in the luxury rental market, especially as many overseas tenants and international students will always favour these parts of London.

Alistair Boscawen

Alistair has 32 years’ experience as an estate agent, starting in the country house department of one of London’s main international agencies before moving to the Knightsbridge house department of the same agency and learning the difference in values between freehold, long lease and short lease houses in Knightsbridge, Belgravia, Chelsea and Mayfair.

All articles by Alistair Boscawen


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