x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Warning of rocketing rents amid a stark housing shortage

With more landlords selling properties than buying them, at a time when there is growing demand from tenants for rental properties, the private rental sector is facing a major crisis. 

According to research by property website Home.co.uk, demand continues to outstrip supply in the rental sector as the volume of new available rental property drops across the UK, having fallen 13% year-on-year. 

The rental market in London has been worst hit by this alarming trend towards scarcity, with the supply of new properties in the PRS plummeting by a staggering 22% year-on-year, fuelling significant growth in rents across many boroughs in the capital. 

A total of ten boroughs are now indicating annualised rent hikes of more than 10%, which is bad news for renters. 

Top of the list is Wandsworth where tenants need to fork out almost 20% more per month than a year ago. 

While demand for the few available rental properties is pushing up rents across most of Greater London, the study found that these rent increases have now spread out into the South East, rising by 6.2%, and the expectation is that this trend will continue into 2020.

Moreover, rents across the UK are up even more overall, rising 7.6% year-on-year, but this figure has been inflated disproportionally by the Greater London mix-adjusted average of 10.9% and those of the North West and Yorkshire, where rents are up 9.6% and 11% respectively.

Tags:

  • icon

    Do something about the rip off stamp duty. Take the wave of attacks against us away and I will buy some more well maintained decent homes to offer. Come on Boris this is you chance to help the many not the few.

  • icon

    Boris needs to look at how rents have soared in Scotland since the loony December 2017 outlawed fixed term tenancies and the reversals forced on the lefty government in Eire when their PRs almost collapsed. No need now to chase the tenant vote but a real need to support decent landlords willing and able to provide more decent good value homes for those unable or unwilling to put their own money into providing for themselves.

  • Paul Barrett

    The fact that rents are increasing is almost irrelevant for tenants.
    This as they can't find anywhere to rent due to scarcity.
    The cost doesn't mean much if there isn't even the supply.
    As has been mentioned this scenario is exactly what happened in Ireland and their version of S24 WASN'T even retrospective!!!!
    The incompetent Irish Govt has been forced to recognise that it's ridiculous S24 policy has resulted in LL selling up with rents increasing by up to 50%.
    There is now a massive homeless problem.
    The Irish Govt is now desperately trying to encourage the return of the private LL but few are doing so wary of the Govt's behaviour.
    .Just to stop the rot in the UK the Govt needs to abolish
    S24
    SDLT surcharge
    S21 being removed.

    But it WON'T and so the rot will continue and rents will carry on increasing.
    I'm afraid the new UK Govt will be too stupid to abolish these impediments to the PRS.
    Indeed I suggest there will be more stupidity with more anti-LL legislation introduced.
    The UK Govt refuses to learn from the obvious similar experiences of other Govts.
    But until there are all blank spaces in every LA window then supply albeit increasingly expensive supply seems to be available

  • phil dillon

    Well said Paul , you have covered all points. In my opinion this magazine needs to read these comments and get the NLA to lobby the new Government with the issues. It will take a long time to build enough Social housing and if the PRS is to keep the wolves from the door the Govt need to ACT NOW. I would be very pleased to see and hear from the editors of Landlord today to establish what they can do to sort out the mess.

    Paul Barrett

    I believe the small LL is very fleet if foot and is capable of very quickly bringing supply to the market to meet demand.
    The fact that such LL aren't behaving normally in light of such demand speaks volumes as to how many snall LL regard the market.
    Small LL can very effectively bring supply to the market in volumes far quicker than ANY BTR operation.
    After all it is NOT as though FTB and tenants are snapping up properties that previously only LL used to buy!!
    There are thousands of DNA LL that could relatively easily expand their portfolios but for all the obvious reasons are refusing to do so.
    Indeed many are selling up and not to FTB or tenants.
    So a total loss to the PRS.
    Until this new Govt realises it DOESN'T have to pander to GR anymore as they have become an irrelevant electoral demographic then PRS circumstances will continue to degrade
    GR can't hurt the Tories anymore proving they retain their new working class voting demographic.
    The Tory future lies in the North.
    If they betray the Northern Tory vote the Tories will lose the trust of the new Tory voters for a generation.
    I would suggest that this should be good news for Northern LL.
    The Tories now have no choice but to move to the left it Lise the next GE.
    One Nation Toryism................whatever that is needs to espoused by this new Tory Govt..
    We shall see what it does!!

     
    icon

    @Paul so if FTB and tenants aren't buying who is because someone must be? other LLs? in that case it means nothing

     
  • Paul Barrett

    By all accounts it is upsizers and downsizers.
    Last year an EA I was chatting to sold 3 LL properties.
    This year he has sold 24 former LL properties..
    All purchased by upsizers and downsizers most of them from London.
    LL owning properties do NOT prevent anyone from purchasing as there are more than enough properties available for sale.
    Making LL sell up does not mean FTB and tenants can afford to buy those properties.

icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up