The latest data reveals a staggering 9% surge in UK rental costs, as experts and tenants alike voice concerns over affordability, prompting calls for urgent government action to address the escalating crisis. Here’s the full story.
Bad to Worse
With each passing day, the news surrounding the UK economy goes from bad to worse, with high inflation, a cost of living crisis and unprecedented poverty levels in the world’s sixth-largest economy.
Little Choice
High food prices, surging utility prices and the astronomical cost of buying a home have left many with little choice but to rent.
35.7% of the Population Rents
Unfortunately, there is more bad news for the 35.7% of the UK population stuck in the UK rental market.
Highest Annual Increase
The cost of renting a home in the United Kingdom has surged significantly, with the highest annual increase recorded since 2015.
9% Increase
According to data released by the Office for National Statistics, the numbers match what many renters would have told you themselves, with average monthly rents across the UK rising by 9% in the year leading up to February.
Grim Reading
The latest figures make for grim reading, with a widespread surge across all regions of the UK, meaning there is nowhere to run from eye-watering rental costs.
8.8% Increase
In England, the average monthly rent has soared to £1,276, representing an 8.8% year-on-year increase.
Countrywide Rental Surge
Scotland and Wales fared no better, with a 10.9% rise, meaning average rents are now £944 in Scotland, and a 9% increase in Wales, meaning rents now average £723.
Steepest Climb
Unsurprisingly, rents in the capital city of London witnessed the steepest surge in rental costs, further cementing its status as the UK’s most expensive rental market.
£2,035 a Month
Average monthly rents in London soared by 10.6% year-on-year, reaching a staggering £2,035.
Mounting Pressure
Several factors are to blame for this unprecedented surge in rental prices, with landlords facing mounting financial pressures.
Higher Interest Costs
These factors include higher interest costs and the dwindling supply of properties to rent, leading landlords to raise rental prices.
Few Places to Turn
Though some landlords have undoubtedly raised prices to offset the financial challenges posed by higher interest rates, others will have raised prices simply as other landlords are doing the same, safe in the knowledge that tenants have few places to turn.
“Shocking But Not Surprising”
Ben Twomey, the chief executive of Generation Rent, a campaign group that advocates for renters, described the situation as “shocking but not surprising” and added that renters were quickly approaching “the very end of what we can afford.”
“Cost of Renting Crisis”
Twomey stated, “As the cost of living crisis eases, the cost of renting crisis is continuing at pace.”
“Landlords Are Raising The Rent”
He continued, “This is not just down to landlords’ costs going up – more than half of privately rented homes have no mortgage attached to them – so clearly landlords are raising the rent just because their tenants have no choice but to pay these prices.”
Affordable and Social Housing
Twomey urged the government to build more affordable and social housing, as well as banning landlords from implementing unaffordable rent increases.
Tax Burden
Greg Tsuman, the director of lettings at Martyn Gerrard estate agents and president of Arla Propertymark, the official body for rental agents, attributed the surge in rents to the burden of taxes on landlords.
Prices Must Increase
Tsuman was adamant that prices would only continue to increase without urgent reforms in the tax regime for landlords.
“Highest Increase in Private Rents”
Tsuman stated, “It is sadly unsurprising that we are witnessing the highest increase in private rents since records began. The market is under immense pressure on every front – high interest rates, a total lack of new supply for housing and landlords exiting the market due to onerous tax obligations.”
“Help Fix The Supply Gap”
He continued, “The government needs to act urgently because this situation is unsustainable. Reform is needed to dramatically increase the supply of housing, and we need to urgently review the tax regime for private landlords and reintroduce mortgage interest relief … This would attract landlords back to the market and help fix the supply gap.”
45% of the Elderly
Amidst soaring rental costs, concerns have been raised regarding the plight of older renters, with polling showing that 45% of elderly renters had doubts over the affordability of their rent.
Government Measures
Independent Age, a charity focusing on older people’s welfare, warns that older renters risk being marginalized unless the government implements protective measures.
Limit Rent Increases
The charity advocates for schemes akin to Ireland’s Rent Pressure Zones, which limit rent increases to inflation rates or a specified percentage.
“Lagging Behind”
Joanna Elson, the chief executive at Independent Age, stated, “It’s clear that England is lagging behind many other countries in protecting tenants in later life.”
Protect the Elderly
She continued, “While nowhere in the world is perfect, there is plenty the UK government can learn from across the globe, and even from our neighbors who make up the rest of the UK, to better protect the rapidly growing number of people renting in later life.”
Another Symptom
The unprecedented surge in rental prices across the UK is another symptom of the economic malaise affecting the country, with an urgent need for government intervention to prevent renters from becoming homeless.
Only Way is Up
Both renters and landlords would benefit from what many in the United Kingdom have been crying out for years: much more affordable or social housing. Until that arrives, the only way for rents to go is up.
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The post Housing Crisis: UK Rental Costs Skyrocket With 9% Surge – Why? first appeared on Edge Media.
Featured Image Credit: Shutterstock / Zeynep Demir Aslim.
Grant Gallacher is a seasoned writer with expertise in politics and impactful daily news. His work, deeply rooted in addressing issues that resonate with a wide audience, showcases an unwavering commitment to bringing forth the stories that matter. He is also known for satirical writing and stand up comedy.