Is this the worst time ever to rent in the UK? That’s what the numbers say
Tenants can expect to see a five per cent rise in rents over the next 12 months, according to the latest damning report about the health of the UK housing market.
The Royal Institution of Chartered Surveyors (RICS) said that some 43 per cent of its survey participants saw an increase in tenant demand in September but new landlord instructions fell by 24 per cent.
A mismatch between rising tenant demand and falling supply is continuing to drive rents higher.
Also the shrinking pool of homes — driven by landlords selling up to avoid high mortgage costs — means that many tenants offer over the asking price on rent in order to secure a home.
The firm warned that as a result of this respondents are pencilling in close to five per cent growth in rental prices across the UK over the next twelve months.
“A proliferation of red tape and taxes for landlords has contributed to shrinking supply and fast-rising rents in recent years,” Tom Bill, head of UK residential research at Knight Frank, said.
He added: “The situation has been exacerbated by higher mortgage costs for buy-to-let owners, the prospect of further regulation and demand from tenants who are unable to become first-time-buyers.”
“Measures designed to discourage landlords have had the unintended effect of causing financial pain for tenants.”
Sky high renting costs is the just one of many injuries the UK housing market has inflicted since the fall out of last year’s mini budget and then the central bank’s 14 straight interest rate hikes, which have sent borrowing costs into a frenzy.
According to Halifax’s latest reading, nationally, the average house price fell by 0.4 per cent in September, the sixth consecutive month of decline, despite a marked slowdown in pace from the 1.8 per cent notched in August.