Shelter shown to be wrong for attacking industry over its tenant fees claim

August 9, 2019

From The Negotiator 9th August 2019

Housing charity Shelter has attacked ARLA Propertymark’s recent claim that the tenant fees ban is leading to higher rents as ‘absurd scaremongering’.

The comment has been made by its campaigns’ director Greg Beales, who also said the claim was ‘untrue’.

His comments follow last week’s statement by ARLA that 55% of letting agents say tenants are facing higher rents since the tenant fees ban.

David Cox image tenant fees

It’s Chief Executive David Cox (left) said that: “Unsurprisingly, rent costs hit a record high in June as tenants suffered the impact of the tenant fee ban.”

But Beales says: “It’s absurd to claim that the tenants fee ban has made private rents rocket, when the Government’s official statistics show this isn’t true.

“In fact, before plans for the ban were introduced, private rents were rising more quickly in England than they are now.

“This kind of scaremongering is completely the wrong thing to do,” he told The Daily Mail.

Rent rise

But latest figures from RICS on the private rental market issued yesterday back up ARLA’s position.

It says tenant demand for property is at its strongest since 2016 and this, coupled to a three-year-long decline in landlord instructions, means 25% more RICS members now predict rents will rise.

Simon Rubinsohn - RICS - image tenant fees

“The lettings market data continues to send a very strong message that institutions need to upscale their build to rent pipeline to address the shortfall resulting from the decline in appetite from buy to let investors,” says RICS’ Chief Economist Simon Rubinsohn (left).

“It is significant that the near-term rental expectations indicator has climbed to a three-year high.”