There has been a big increase in demand from tenants after the tenant fee ban was introduced, figures reveal.
According to data published by Rightmove, tenants who are looking for a new rental home grew by 7% between May and June, that is seven times higher than the previous four-year average.
The figures could highlight that some tenants are looking to move earlier than they normally do with peak demand coming in July.
However, there will be tenants who were encouraged to move with the removal of tenant fees, leading to some of them saving hundreds of pounds.
The figures reveal that for London, tenant demand grew by 13% compared to the average of 4% over the last four years.
Growing pressure on rent prices to increase
Along with the increasing rental stock shortage, there is also growing pressure on rent prices to increase. Excluding London, average asking rents have reached an all-time high of £817 per month.
That's an annual increase of 2.7% and it's reflecting the same steady rise that has been seen for the last three quarters.
The commercial director at Rightmove, Miles Shipside, said: "An increase in tenants looking for a new home indicates that some may have held out until fees were removed by the government before starting a new tenancy.
"The shortage of quality stock could be exacerbated further by those landlords whose tenants are giving notice, so they can move without paying fees and some landlords will now choose to sell up, rather than let out the property again."
He added that rents are rising at nearly 3% a year, with demand for quality homes outstripping supply.
However, he said: "Rental price rises may also indicate that some landlords and agents are attempting to raise rents to compensate for the loss of tenant fees."
Tougher regulation facing agents in England
Meanwhile, managing and letting agents in England are facing the prospect of tougher regulation to meet the recommendations made by the Regulation of Property Agents Working Group.
The report has been published by the Ministry for Housing, Communities and Local Government and will aim to raise professional standards across the industry, including a recommendation that all letting agents have at least a minimum Level 3 qualification to meet the standards for regulation.
The National Landlords' Association's chief executive, Richard Lambert, said: "Landlords are consumers of property agent services as are tenants, and we hope that the report's proposals will drive forward the professionalisation in the private rental sector to make it a better place for those who work and live in it.
"We are please particularly that the report goes beyond looking at activities and places emphasis on the importance of behaviour and ethics."
