Survey Reveals Letting Agents’ General Election Worries
May 4, 2015 |
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According to the new monthly report from the Association of Residential Letting Agents (ARLA), most letting agents believe that the proposals for the creation of three-year tenancies, put forward by Labour, will result in landlords pulling out of the private rented sector, reducing the supply of housing.
Their survey of members revealed that 72% of letting agents across England and Wales think that three-year tenancies with a cap on rents will drain the market of rental properties.
Not only do most letting agents say landlords will exit the market, but three-quarters (74%) think that the proposals of three-year tenancies, rent controls, and the introduction of rules to make it harder to evict a tenant, will not actually benefit tenants at all. This is an increase of 5% from February.
However, over a third (37%) of ARLA agents agree that the Tory pledge to build 200,000 new starter homes would be a good thing for the private rented sector. Although it would allow a segment of renters to exit the market by buying their own properties, it would free up rental property and decrease the widening gulf between supply and demand.
Additionally, ARLA’s March report revealed that 31% of letting agents had successfully negotiated rent reductions for tenants. Rents capped at the rate of inflation, on the other hand, almost guarantee annual rent rises.