Deposits have been limited to 5 weeks rent and 6 weeks rent where the annual rent is £50,000+. How Does It Affect The Private Rented Sector? This has caused rents to rise as agents fees were passed on to tenants, before the act came into play this was a warning also given by four previous housing ministers. 57% of landlords also planned to increase rents to cover the removal of tenant fees ahead of the ban. Concerns were also raised in terms of the impact on quality of the private rented sector. Fees would have given landlords a bigger budget to invest in home improvements, with this gone landlords may reduce the budget for home improvements therefore reducing the quality of the private rented sector.  

 

What Has The Impact Been On Landlords The National Residential Landlords Associations figures reveal that more than 53% of all landlords in England who use agents have seen an increase in fees as a direct result of the act. This has resulted in more landlords self-managing their properties as opposed to keeping it with an agent. The figures from the NRLA in the last quarter of 2019 was up to 43% from 36% in the previous quarter. A typical landlord also spent around £3,221 on letting and management fees in the final 3 months of 2019, that figure is up by 59% from the previous year which is an increase of £1,195. What Has The Impact Been On Agents Not all letting agents in England have seen an impact on their revenues from the act, however here are the results from a recent survey performed by proptech company - Goodlord.