A leading supplier says rent rises seen in recent months have been driven by increased taxes and regulations imposed on landlords.
The claim comes from Andy Halstead, HomeLet & Let Alliance chief executive, in the light of a new record high UK average rent of over £1,000 per calendar month.
Halstead says: “Throughout the Coronavirus pandemic, the government rightly took measures to protect tenants but didn’t go far enough to balance the protection for landlords.
“It’s a continuation of the theme that we’ve seen for many years, with landlords being penalised by higher taxes and increased complexity in obtaining possession of their properties.
“In simple terms, increased costs for landlords mean increased costs for tenants. Some landlords have exited the market whilst the stamp duty holiday has stimulated the sales market, impacting the stock level. These are all factors driving an increase in rental values for new tenancies, which are way above the rate of inflation.
“The private rented sector plays a critical role in the UK’s housing market. As restrictions begin to ease, the flexibility provided by rentals will be crucial to mobility across the UK and as a means to access affordable housing that fits the varying needs of a diverse range of tenants.
“The sector works best when there’s a mutual balance between tenants, landlords and letting agents. The Government can’t treat the rental market as an afterthought. Policies that solely focuses on homeownership will only deepen the issues in the UK’s housing market.
“Some people might be shocked to see the average UK rental price tip over the £1,000 mark, yet supply and demand dynamics will only continue to drive rental prices upwards for the rest of the year, and we’ll see more records broken in 2021.”
HomeLet’s latest figures show the average UK rent now stands at a record £1,007 per calendar month - the highest ever.
That’s up 5.9 per cent on the same time last year, and up 7.0 per cent on this time two years ago.
London sees its first price increase for over a year, with an annual rise of 1.5 per cent to £1,607 ppm - although this is still lower than pre-Covid, when the average was £1,611 back in June 2019.
Excluding London, the average UK rent is actually 8.0 per cent higher than last year, up to £861.
South West England saw the highest annual price rise, with the current average price of £948 ppm, marking a 10.5 per cent increase on this time last year, and a 12.6 per cent increase on pre-Covid levels.
Scotland has seen the most significant rise in just the past month, with the average price rising 4.4 per cent to £738 pcm in June.
Elsewhere, rent prices in the North East fell by 2.3 per cent compared to last month to an average of £547, one of only two regions to see a month-on-month price dip.
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.
The main landlords’ trade body has blasted the government for ‘breaking’...
A reminder has gone to landlords about new electrical safety standards...
New regulations on electrical safety standards for private rented accommodation have...
New regulation introduced yesterday could see unscrupulous landlords fined up to...
The vast majority of tenants are unaware of new laws introduced...
Despite the recent tax crackdown, buy-to-let continues to look an attractive...
The property market had enjoyed a boost thanks to the outcome...
There wasn’t much by way of good news in the Spring...
Twenty twenty-four is a pivotal year for landlords in the Private...
National Landlord Investment Show has announced that the former Leader of...
The management of BTL properties, whether it's a modest collection of...
We are thrilled to report that the first National Landlord Investment...
If interest rate rises weren’t enough to drive landlords out the...
Landlords play a crucial role in providing safe and comfortable housing...
.jpg)
Calling all landlords, Investors and property professionals: National Landlord Investment Show...
A recent survey by digital mortgage lender, Molo, revealed that nearly...
In the buy to let market, success goes beyond the transaction...
Mohammed Sharaz, a landlord from Bradford, recently seized an opportunity to...
We believe a well-functioning housing system is one that meets everyone’s...
It’s not just the weather that’s wet and dreary – the...
As the ‘big buy-to-let’ sell off gathers momentum, we take a...
The challenges facing the property market right now are well reported;...
If you are a landlord looking for the silver lining in...
This year is set to bring sweeping rental reforms that will...
Landlords are exiting the market in droves. According to an accountancy firm...
%20(002).png)
Newable Finance, the finance brokerage & advisory arm of Newable, launches...
As landlords continue to exit the market, there seems to be...
A council has prosecuted a landlord for letting out two HMOs...
The Labour-led government in Wales has issued a consultation proposing the...
Another council is looking for landlords with rental properties to match...
Another council is looking for landlords with rental properties to match...
.png)
Landlords and renters’ activists are at either end of the spectrum...
A prominent lettings sector expert is blaming the media for anti-landlord...
Who are you and what does it say on...
Who are you, and what does it say on...
Who are you? I am the Head of Broking for...
Join the conversation
Jump to latest comment and add your reply
Mastermind Andy doesn't take into account the years of rent rises that would not have happened if S24 and a raft of overburdening rules legislation, draconian fines et al weren't foisted upon the PRS only as part of a deliberate campaign to get us to sell up.
Increased cost & regulations = LLs exiting market = less properties
less properties + more demand = higher rent
Basic maths!
And those of us that are left debt free will profit.
Or indeed, more ered tape, extra restrictions, additional costs.....
Of course the inevitable and expected is that all these added costs will, without doubt, be passed on to the tenants, and more likely too added fees will be added to the actual increases.
Why should I, as a LL, be forced to pay for unfair Local authorities incompetence.
For sure I will pass it on, and I will add a 15% administration cost too.
Correct all part of the plan drive rents sky high on Tenants while pretending to be their friend. Forced up by compliance on private LL’s to drive him out, now enter the big boys Lloyds, General Accident, Lloyds Bank etc with rents already high to give them a heathy return & the little guy has his back to the wall.
So a LL’s in Dudley was landed with a huge fine of £32k how dare he appeal. The appeal outcome should be based on whether the Penalties were justifiable, reasonable or not and not to more than quadrupled the penalty to £151k, this woman Councillor says let it be a lesson to us what she’s capable of, and not finished yet going for full a Nation wide Ban for daring to Appeal, (if he had paid £32k it would have been hunky dori end off for now at least) this is not what an appeal is, is this British Justice or abuse of her position.
Basic Victorian terraced house in Norwich now £ 7 - 800 per month, wasn't long ago that I was happy with £ 4 - 500 per month, now that's inflation for you, caused by Shelter etc and the government
Absolutely agree with the above. We have dealt with Shelter on numerous occasions and found them really unhelpful despite us trying to help vulnerable clients.
“Housing Prevention Officers”
Agreed - I checked recently, I'm about 40% on average up since Osborne started the war. Given my borrowing costs have reduced substantially, it's the tenants who are paying the costs, big time!
Andrew even if you are Bank loan free your profit is getting quickly eroded with Regulations, Compliance,
Licensing, DICR, Fire regs, Right to rent maybe to wrong person, property damage no redress, just wait until they slap £10k penalty here & there willy nilly, dare not appeal or it might be 100k
And when will it stop?
My profits continue to grow as my rents increase every time my costs go up.
Tenants always pay for the interference caused by do gooders, Shelter etc.
The whole system is broken due to some wasters +clowns +arrogants in authority, local, national etc. incapable of joined up thinking, i.e. the consequences of their extremely short term actions. Ofcourse they exempt all social housing from basic safety requirements and demands. We had twisted Chancellor who thought he could push out LLs expanding by increasing stamp duty! Private school education did not help him! Many of our 646+ MPs down by the Thames should take a pragmatic, look at the scene, if they are capable of doing so on their £85 to £90K pa salary and extortionate expenses. Come on wake up from your dreams LLs.
What did the government expect?
1. Tenant's fee act 2019 (fee's applied by Letting Agent's not LL's, but the LL's pay for it).
2. Mortgage interest tax relief changes
3. Section 21 eviction changes
4. Landlord Licensing
5. The new EPC rules - April 2020
6. The new EICR rules - 2020
7. 2 Stamp duty changes in 18 months for BTL investors/LL's (George Osborne)
8. Right to Rent checks
9. Capital Gains tax changes in private residency relief
10. The economy, Brexit, Covid-19 and government intervention on eviction bans during lockdown
And every single point above incurs more costs...And guess who pays for all that little lot?
HINT: It ain't LLs!!!!!
ANSWER: In fact, as LL I love all that sh*t, becuse I make more money on it.
At least 15% on all these nonesense costs additions.
Bring it on Local Authorities - PLEASE!!!!!!!
You damage your constituents and make me richer. Please can you keep this disaster going.......I am much richer thanks to you and all your rubbish schemes.
I need more, and I am looking forward to it. You are doing a fabulous job.
Surely not!! I received a letter from Mel Stride at the Treasury via my MP assuring me that the Treasury had considered all outcomes, and rents would not rise.
Economics 101 you muppet .....
That's like all the LAs who said that LLs would absorb the cost of new licensing - dream on!
Here here.......Every extra penny they ask me to pay gets banged on the tenants bill at some time or other.........Plus my now famed extra 15% for every penny extra that these dummies make me pay.
All this red tape backfiring big time !
Now here is the contradiction we as landlords moan about all this pointless legislation but the unintended consequences is we benefit from it. Heads we win tales you lose!
Landlording has become a lot more complicated but more profitable.
Jim Haliburton the HMO daddy
Jim, fully agree. I think that we invest heavily in going through the various hoops and loops, with the resultant increase in rentals. However, repeating the above becomes easier and therefore cheaper, so yes more profitable
The greatest imbalance between tenant demand and supply of available properties for nearly 10 years accounts for a large proportion of rent increases. Just posted a graph courtesy of KF on my FB page thats shows the difference. facebookcom/aficionadoproperty
Don’t agree Mr Square Foot or not, no shortage of housing just shortage of people that wants (Social Tenants) hence £8.4b false Claimants, loads more trying to get in on the Act. Thousands of high rise not required but encourage, coax & financial Schemes support to rope them-in.
Encouraging self Build I am all for that but at the same time individuals not allowed to do anything, certificate this that and the other not even allowed to put in a Payne of glass never mind built a house, too much cotton wool.
Please login to comment