UK: Private rents rise at record rate with high tenant demand in London

UK: Private rents rise at record rate with high tenant demand in London

by Pranali Mehta

Private rents in Britain are reportedly rising at a record fast rate, adding further strain on households amid the cost-of-living crisis.

Rents in London are higher than what they were before the start of the pandemic, reaching an all-time high, having bounced back after a surge in demand as employees made a slow return to their workplaces and more International students looked for a place to live in the city.

Outside London as well, rent has increased by 9.9% from that of last year, according to real-estate website Rightmove, as tenants jostle for properties for their post-pandemic life.

The advertised average asking rent outside London is at £1,068 ($1,429) per month, while in London it stands at £2,142 ($2,867).

These hikes have been linked to a higher number of tenants as compared to the stock of properties available to rent.

As per Rightmove, tenant demand is 32% higher than what it was last year, while available properties are 51% lesser.

A company spokesperson stated that the imbalance between tenant demand and the rental stock has caused asking rent prices to increase and has led to stiff competition between tenants for the available properties, almost doubling in comparison to the same time period last year.

This may be because many tenants in London as well as other major cities had relocated to suburbs and countryside, places with more open space, due to the pandemic, after re-evaluating their lifestyle.

The website predicts that there will be a further 5% increase this year in the average asking rents.

In separate research, it was found that few landlords have increased rents in order to make up for the increased tax burden they were facing.

In the last few years, many amateur landlords that had been attracted by the buy-to-let boom ended up quitting the market due to the tax and regulatory changes that in a few cases had hit their profits.

According to Landlord Works, a platform run by financial service provider Nationwide Building Society, one out every four landlords had to raise rents after new tax changes were introduced between 2017 to 2020.

Source credit: https://www.theguardian.com/money/2022/jan/27/private-rents-in-britain-rise-at-fastest-rate-on-record

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...