The UK is experiencing record-high rents, with the average private rent increasing by 9.2% in the 12 months leading up to March 2024, according to the Office for National Statistics (ONS). In England, tenants are paying an average of £1,285 per month, a £107 increase. In London, rents surged by 11.2%, reaching £2,055 monthly.
Despite the Westminster government's recent measures, tenants face challenges in keeping up with rising costs. The Renters Reform Bill is crucial for providing renters with security, yet its progress remains uncertain. Affordability remains a significant concern, with renters spending a substantial portion of their income on housing. The shortage of affordable housing exacerbates the situation, with the private rental sector bearing the brunt. While some hope for a decline in rents, factors like landlord exodus and wage stagnation suggest rents may continue to rise, posing a significant challenge for policymakers to address.
Within England, London faced the highest rent inflation at 11.2%, while the North East witnessed the lowest at 6.1%. Notably, Kensington and Chelsea boasted the highest average rent at £3,305, contrasting with Dumfries and Galloway's lowest at £475 in Great Britain. Meanwhile, UK house prices experienced a marginal decrease of 0.2% in the year leading to February 2024, marking a shift from the revised 1.3% decrease recorded in January 2024.
Privy to legal issues
Bhavini Kalaria, Partner in Dispute Resolution and International team at Harold Benjamin Solicitors told Asian Voice, “The trend of rising rent prices alongside a more stabilised housing market can lead to several legal issues. Rising rents have historically been linked to an increase in landlord/tenant disputes, particularly if tenants cannot keep up with higher rent demands. This can lead to issues with rent arrears and an increase in eviction processes. Where rents are out of step with wage increases, political and social pressures for regulation of the rental market are also often more acute. We have seen some attempts at dealing with tenant security in recent years. On the other hand, investor landlords must navigate meeting their obligations from increased regulation around rental housing, and the higher costs of borrowing, and being unable to cover these costs for the reasons set out above. The ONS report shows that access to housing and lack of housing remains an ongoing, key issue for tenants and landlords.”
Tenants staying for a third longer, according to The DPS
According to research shared with the newsweekly by The Deposit Protection Service (The DPS), renters are now staying in their properties for approximately a third longer than four years ago, with the average tenancy lasting 924 days, up from 706 days in 2020. This increase of 218 days marks a 30.87% rise. Matt Trevett, Managing Director at The DPS, attributes this trend to factors like high rents, competition for rentals, financial constraints, and the acquisition of 'lockdown pets'. The data also reveals that the difficulty of moving has increased, with more respondents facing challenges in securing rental properties, making financial sacrifices, and paying higher rents to secure accommodation.
The surge in UK rent prices poses significant challenges for tenants, exacerbated by a shortage of affordable housing. Despite recent government measures, such as the Renters Reform Bill, uncertainty looms over renters' security and affordability. The disparity in rent increases across regions underscores the complex nature of the housing market, with London experiencing the highest inflation. Additionally, tenants are staying in properties longer, reflecting the difficulties in securing new accommodations amidst rising costs. Legal issues, including disputes and eviction processes, are on the rise, highlighting the need for comprehensive regulatory frameworks. As tenants grapple with financial constraints and increased competition, policymakers face mounting pressure to address the root causes driving rent hikes and ensure accessible and secure housing for all.
