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Tenants are most likely to move property after June 1st, creating a new surge in tenant activity that landlords should be prepared for.
According to research, many tenants will be looking to move after June 1st in order to avoid paying upfront fees and benefiting from capped security and holding deposits.
The recent research from The Deposit Protection Service (DPS) suggests that tenants could be delaying moves between rental properties until the Tenant Fees Act officially becomes law next month on June 1st.
The study found that rents dropped during the first quarter of 2019, with the average rent across the country during the first three months of the year falling to £757. This is down by £5 (0.64 per cent) from the final quarter of 2018 and £14 (1.87 per cent) from Quarter 1 2018 a year earlier.
The DPS said that the drop-off is down to a range of economic factors alongside a period of ‘tenant inactivity’ ahead of the tenant fees ban.
Nick Lyons, CEO and Founder of inventory service provider No Letting Go, commented: ‘It’s no surprise to see shrewd tenants delaying moves until after the fees ban and deposit caps are introduced on June 1st.
‘The upfront cost of moving between rental homes can be high – particularly in London and the South East – so renters will do anything they can to keep costs down, even if that means putting their move on hold for a few months.’
He feels that while a recent dip in activity may have allowed agents and landlords some extra time to prepare for the new system, they should be braced for a significant uplift in activity from June 1st onwards.
Lyons continued: ‘Tenants are likely to have continued searching for properties over the last few months and will be keen to push their moves through as quickly as possible so they can be settled in their new property for the majority of the summer months.’