Sales and asking prices for UK property are once more starting to build up a head of steam so, many people’s only option is the rental market. But, even this is proving tough as private rental prices paid by tenants are up by 1.3% in the 12 months to May 2019, up from 1.2% in April 2019.
With average property asking prices in the sales market now sitting close to their all-time record highs, most people looking for their own home are struggling to find a foot on the property ladder. Instead, many are forced to look at the rental market to find a home of their own.
The latest ONS data shows that in England, private rental prices rose by 1.3%. Wales was also up by 1.1%, while in Scotland, private rental prices increased by 0.8% in the 12 months to May 2019. London, who is finding things tough in the sales market when compared to the majority of the country also showed an increase in private rental prices. London rentals rose by 0.9% in the 12 months to May 2019, up from 0.5% in April 2019.
We ask two property rental experts for the reasons behind this:
Co-founder of ideal flatmate, Tom Gatzen, said: “We’ve seen a notable increase in the number of UK households in the private rental sector over the last 10 years in particular and this growing dependence has been the driving factor behind a consistent increase in rental costs, as demand continues to outstrip the supply of suitable properties available.
This hasn’t been helped by changes to the sector which have deterred buy-to-let investment to a degree, and the latest introduction of a tenant fee ban could see rents climb higher as letting agents pass lost revenue costs onto the landlord.
While the build-to-rent sector is going some way in addressing the supply of new rental properties, more must be done to help a sector that is currently buckling under the weight of a nation that is largely dependent on it to put a roof over their head.”
Co-founder of Bunk, Tom Woollard, said: “The rental affordability continues to grow ever wider and while it’s far too early to see any official increase in rent hikes as a result of the tenant fee ban, there has already been a number of reports whereby letting agents have increased rents stating the ban as the direct reason, some even doing so prior to the implementation of the ban.
This unfortunate attempt to recoup financial losses will further stoke the fires of rental unaffordability and it looks as if the rental landscape is going to get tougher for the UK’s tenants before it gets any better.”