A deposit alternative service claims rents have risen an average 46% in the last decade.
Zero Deposit claims it’s analysed rental market data, looking at the number of renters across the UK, average cost of renting, the increase in the number of tenancy deposits held for UK tenants and the total value of these deposits.
It says there are currently over 5m deposits held across the UK, a 66% increase on the 3m held a decade ago. This number has climbed by 5% in the last year alone, having also increased by 5.5% between 2022 and 2021, the highest rates of annual growth seen since 2017.
By contrast in 2023 there were an estimated 5.22m rental homes across the UK, an annual reduction of 0.3% and down -
3.1% versus the peak of 5.38m in 2017.
As a result, rental prices have spiralled.
The latest figures show that the average monthly rent climbed to £1,232 in 2023. This marked a 9.7% increase on the previous year, with the average rent also increasing by 9.7% between 2021 and 2022 and by 5.8% between 2020 to 2021.
Sam Reynolds, chief executive of Zero Deposit, states: “Reliance on the rental market has been growing consistently over the last decade, however, demand for rental homes has exploded in recent years as soaring house prices have forced many to postpone purchases.
“We simply don’t have an adequate supply of quality rental accommodation to satisfy this surge in demand and the consequence of this market imbalance has been a huge acceleration in the cost of renting.”
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Sam Reynolds after publicity again. Why does he think rents have risen? Not a mention of Section 24 or Section 21 or RRB. Just publicity for him and his company. 😠
Of course rents have risen. The government are pocketing huge amounts of the rent in tax. Local authorities are taking a slice as licensing fees. Tradespeople need to be paid to perform the numerous safety checks. Mortgage rates have risen hugely.
Section 24 is just hideous. RRB is making some landlords sell. There's a huge lack of rental properties and high demand. House prices have risen significantly in the last 10 years so of course rents have risen.
However, wasn't there an article yesterday saying renting was currently cheaper than buying in almost the entire country? So clearly prices haven't spiralled as much for tenants as for owner occupiers.
Rents up 46% in 10 years & the SNP want to reduce this to 0% over 5yrs? What sane person will want to be a LL under those conditions?
I am amazed in the extreme that any private individuals are still landlords in Scotland 🏴 🤷♂️
I agree if I had only had a 46% increase in rents in 10 years and had to suffer having tenants stay forever.
In practice my rents have gone up by 75% between 2017 and 2023, with a further 12% due on any tenant changeovers this year.
By avoiding families I also avoid the abolition of Section 21.
All in all, the SNP war on PRS tenants has worked very well for most Scottish landlords with the best high demand properties but has been a disaster for tenants, especially those at the lower end of the market.
However, since the lower orders are those who have elected the SNP, I have no sympathy for them.
One thing it does show is a reduction of 160k rental units since 2017, strange this coincides with the removal of tax relief and the start of all the other nonsense. What will be really interesting is what the numbers will be next year.
Yep, 160k rentals down, reinvestment trailing way behind demand and immeasurably worse to come. Good job Shelter, Gen rent, Gove et al.
Now perhaps they need to explain themselves to Tenants needing a home!
Yes. I wouldn’t suggest that they are in the pocket of Big Developers every Office Block in London is being Converted or Demolished to pack-in even more Residential high rise Flats they are coming with full Government support to take over PRS, we are being bulldozed out of the way, inventing laws to legalise our demise. Might as well add Permitted Development Rights to turn unwanted Pubs, Shops and Banks into Residential, looks like no other Business left. Anyway let’s keep the cement mixer going or the Country is finished.
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