The Office for National Statistics says private rents in England experienced a 6.1 per cent rise in 2023, the sharpest annual increase on record.
Wales saw the highest annual rent increase in Britain at 7.1 per cent with Scotland on 6.2%. London rents escalated by 6.8 per cent last year.
Tom Bill, head of UK residential research at Knight Frank, says: “Low supply continues to cause financial pain for tenants as it keeps strong upwards pressure on rents. Landlords have been disincentivised by tax and legislative changes in recent years and there is no sign of that changing, particularly as the general election campaign gets underway this year.
“Political interference has had the unintended consequence of making life tougher for tenants although we expect UK rental value growth to calm down marginally to 5.0 per cent this year as more demand is absorbed.”
And Jeremy Leaf, north London estate agent and a former RICS residential chairman, adds: “For aspiring first-time buyers the sad news is that average rents are still rising, making deposit saving even more difficult, and it’s also making life harder for longer-term tenants too.
"The usual suspects are at work here – shortage of stock, partly caused by landlords leaving the sector in response to worries over the tax and regulatory regime, while at the same time demand seems unstoppable.
"However, in the early weeks of 2024, we have noticed an increase in supply which has helped to keep a lid on some of the more ambitious rents and the gap with demand is narrowing."
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Record extraordinary rise in costs of Compliance of Regulatory Requirements, Tax, Totally unnecessary Renter’s Reform Bill to do as much damage as possible to PRS, Unnecessary hugely expensive Licensing Schemes Borough wide in some cases making Rents unaffordable, in this process the Council’s have Banned Section 21 / if you don’t have a license you cannot use S.21, therefore they are able to Ban the 1988 Housing
Act on a whim without telling us or having a Consultation.
What’s all this talk about an Election coming up why bother to vote no one takes a blind bit of notice of us. Anyway there has been no Rent increase taking this on Board, just add inflation and interest rate hikes in 2023, now Think Tank or Office of National Statistics go and have a lay down.
Social rent rises were capped at 7% in 2023 instead of the usual inflation linked increase.
If PRS rent increases were only 6.1% that is a real terms reduction and demonstrates just how commited to our tenants well being PRS landlords are. Our costs have risen hugely but we clearly haven't passed on corresponding price rises to our tenants. For some of us our mortgage costs have more than doubled, insurance has increased by 35%, tradespeople's day rate is up more than 20%.
There has been article after article about stratospheric rent increases. The activists have been screaming all year about it. Turns out those increases were the exception and that the vast majority of rent increases were well below inflation.
Great Points Jo.
As usual Jo, your finger is on the pulse. You should be doing Beadle's job
Yes record increase in all mine, over 10%. Also record increase in mortgage interest, over 100%. There will be another record increase this year. Sorry about that, but the alternative is sell the properties. They were all below market rent before all this.
I'm exactly the same. My rents have been seriously low. Not anymore. Again there will be an increase but less than half of what I needed to do last year.
Well my rents are up again this year, as last year, and they will keep going. I fear what Labour will do so am getting them to market rent as I sell them off.
The tenant will never be motivated to move out whilst below market value rent. Labour will stop evictions whilst the LL goes bankrupt. Costs have gone up due to inflation and interference from HMRC, Gov, council and leftie agitator groups.
This is what you want so this is what you get. Put your rents up protect your business so you can keep roofs over peoples heads
I have a woman I want to see the back of so have sent her a sec 13 rent increase, not heard anything back, maybe she is going to try an appeal, I await a letter from CAB
Andrew, I am curious as to why you are not issuing a Section 21 while you can?
AL likely I will or a sec 8 as she is in arrears and constantly pays late, if she pays the increased rent she can stay and I get my money due by the increased rent, I was hoping she would throw one and leave
Good luck Andrew, I hope for your sake she just leaves. Took me 14 months from start to finish to get a tenant out using section 21. The Norwich Court system is very backed up.
Not the only reason for the delay but was a part of it.
Exactly S13 the best motivator whilst we have it
Yes, rents are going up but not in line with inflation, mortgage interest payments and unnecessary costs of legislation. The cost of maintaining and repairs have gone up drastically from 2021 and 2022 prices. So net rent in real terms for LL's have actually gone down. Selling in current market is not possible. My research says same properties being put for sale are not selling. Even with reduction of 20% from 2022 prices, they are not selling. Yet agents are desperately trying to get business, asking us to sell with them as they can bypass the market and sell to foreign investors, as if these investors do not study the market themselves. From what I understand, a lot of sales, once agreed are failing to complete and sellers left disappointed in central London. My tenant in central London who works part time for estate agent gives me these news. She is a full time student. That has been my research, as hardly anything has been completed in my 2 buildings for 3 years or at a loss. There are 800 properties in the 2 buildings, about 50% owner occupier and others rented.
Andrew. This is the worry when relationships breaks down between Landlords & Tenants and if we are going to lifetime Tenancies, what then a life sentence for the landlords & a mental breakdown as well.
Michael before that happens it will be a forced eviction to hell with the law
Perfect point Michael. I didn’t sign up for life
Despicable, law breaking, psychopathic comments as usual Andrew. Hopefully you'd end up before a judge.
Yes James I'll happely break the law where needs must, I'll end up before a Judge well I have no respect for them or the courts , so be it if I do end up there
James Turner a bit OTT with your comment. Andrew is simply and ably demonstrating how ludicrous the law is with regard property.
No point in me continuing as i'm sure that we will disagree.
Andrew. I know how annoying and frustrating all this injustice is but take a step back please don’t even go that route it will only go from bad to worse, it will work against you and they will love the extra ammunition’s, sometimes turn the other cheek and walk away,
difficult but best, keep well 👍
I'm not having a bad tenant or the law making me ill
I absolutely hate having to write this but Michael has put his point well. Landlords have money and property to lose, therefore it is easy to punish us.
Andrew, you will feel 10 times worse if you are in a cell or on community payback doing 200 hours due to this tenant.
As Michael wisely said, take a step back. If you do not want to deal with it get the estate agent to help.
When I did my eviction it was through gritted teeth. There was no way I was going to let the tenant get any more out of me. It was extremely maddening for me but in the end the Court gave me my house back and the Council are refusing to give him a property and he is in some grotty B&B according to his Mum. Small recompense I know.
Best of luck.
Perhaps James Turner could put him up - or is he also (justifiably) homeless?
Congratulations fair play you have made a great recovery plenty of fire in the belly yet.
Too right Michael
rent shall continue to rise when the government keep adding to landlords' costs as in epc electrical testing gas testing licencing schemes taxes removal of tax breaks all this cost money and all is passed on to the tenant generation ren ti adding to these rent increases with so many demands, they want to stay in hotels but not to pay hotel prices, you dont have to have a gas safe certificate oin your private house so why do you need one in a rental home, at least not every year but every 5 years
Expect much higher increases to come, due to the sheer amount of fees being put on us landlords.
Expect much higher increases to come, due to the sheer amount of fees being put on us landlords.
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