Rent rises could finally be set to slow down because more housing stock is becoming available due to the cost of living crisis, a property expert is warning.
Recent reports have suggested that rents are outstripping inflation in more than a quarter of Britain's local authority areas. According to Zoopla, prices have rocketed by at least 10.1 per cent in 102 council districts as tenants face a crippling lack of supply.
But Jonathan Rolande, from the National Association of Property Buyers, believes the surge could finally be about to end.
“Increases will now slow to around six per cent per annum. Why? Well the cost of living crisis is leading to more stock becoming available. Plus new homes that don’t sell are being let, and many more people are now sharing and lodging rather than living in single households.
“In terms of the regions that will continue to see the highest rents, London and Manchester have risen sharply in recent months and they in theory, have the furthest to fall. We will likely continue to see large cities leading the field when it comes to increases – quite the opposite of 2020 when there was an exodus to the seaside and country.
According to the recent Zoopla survey, three London boroughs have recorded rent rises over double the rate of the consumer prices index.
The City of London recorded the largest jump in rents, with prices surging by 24.8 per cent in the last year. In Kensington & Chelsea, Westminster and Tower Hamlets, rents of new newly let properties climbed by 22.1, 21.4 and 20 per cent respectively.
All of the top 10 areas that recorded the largest jumps in rents in the 12 months to August were in London. In Islington, Hammersmith & Fulham, Camden and Newham, rent growth was in excess of 18 per cent.
Outside London, the steepest rent growth was in Salford, Greater Manchester, where prices jumped by 16.3 per cent. In neighbouring Manchester, rents climbed by 15.7 per cent. Another hotspot was Wales, with rents in Denbighshire and the Vale of Glamorgan rising by 16.2 and 15.4 per cent respectively.
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London is on another planet and cannot be compared to normal towns and cities
Does this report actually say that people are renting what they can afford instead of what they want? That has got to be good news for everyone.
Interesting. I have noticed locally there are more one bed flats to rent than anything else, maybe because some tenants have moved back home or into shared houses? Still very few 2 or 3 bed houses and those that come up are £250 pcm more than my tenants are paying! Can't see rents coming down any time soon.
I only have a couple of one bed flats, they rent well to the recently separated / divorced.
There do seem to be a lot of new builds going up everywhere, and I'd imagine they will be much less easy to sell now, and some might well get rented out. I guess some schemes were delayed due to covid and other factors. Also I think there may be a few abandoned building sites (as per 2008) once things get worse next year.
Developers aren't going to build properties that won't sell, no one can blame them for that
I cannot see these stats being correct. I can see that there will be some movement from tenants leaving. I have had 2 families decide to go back to their countries as they have family commitments there but also much more of their money is going on rent and my rents are not high. The last ones whom have just given notice and leave in first week of December left as I let them know of a rent increase. I was still £75 below the average for Bedford for a 3-bed house.
There are a few tenants that can now buy and this will create movement, but with builders bound to reduce their build quota as we enter into the recession which will be 23/24 then stock will fall and tenants will struggle to find properties.
I don’t know who write this report but they are clearly in denial about the obvious impending exodus of BTL landlords.
There will be no fall in rents, the exodus of LL’s leaving the PRS will squeeze supply, pushing up demand. My properties are all in NW London, agencies are screaming out for more properties, a 10% increase in rent at the end of the term is not putting tenants off from renewing, they are fully aware that it’s a bun fight out there. Those that are lucky enough to secure a property are taking them site unseen. The writer of this article clearly hasn’t done his/her homework.
Why are Government getting rid of Section 21 only to stop people turning up at Council Office’s to jump the queue and get subsided Housing for the Council, that’s not our doing many times Renter’s are to instigators of this action.
So in general there is very little evictions because Section 21 is in place and we happier to let long term.
I have many long term and haven’t evicted anyone years and didn’t need to because I have Section 21 and they Tenants know this, so if they mess around too much they know I can do something about it, take it away and see what happens when they know I have no control, its a recipe for disaster.
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