Rents have been increasing sharply, say three different reports.
According to the Deposit Protection Service, average rents rose 1.79% in the second quarter of this year compared with the first three months.
The increase between April and June is the first ‘significant’ uplift in rents for almost two years, said the DPS.
Daren King, head of tenancy deposit protection at the DPS, said: “The increase in rents during the second quarter of 2019 is striking, after a prolonged period of stagnation in the market.
“Many commentators predicted that the tenancy fees ban would drive up rents as letting agents and landlords looked to alternative sources to cover costs but, with the ban coming in late in the quarter, it’s too early to say whether it is behind the hike.”
According to the DPS, rents in London during the second quarter were £1,319, and outside London £673.
On average, says the DPS, UK renters are spending 32% of their wages on rent.
Meanwhile, tenancy referencing firm HomeLet says that UK rents have risen 13.9% in the last five years, and that the average newly agreed rents in June were 1.8% higher than a year ago.
There were rises in all 12 regions.
The third report, from franchise chain Belvoir, says that on average rents handled by its outlets are up by 5% on last year.
Comments (9)
I don’t know about anywhere else, but in this borough, council rents are increased every 12 months. PRS landlords are not unreasonable to do the same. Historically we’d usually kept it to once every 18 months, but if the landlords are being clobbered by the fee ban, then it’s not rocket science to figure out that most will move to annual increases
Good, I increase all rents in line with RPI annually, some landlords run hobbies not businesses and those hobbies are becoming charities.
Ah but there could be a step change where hobby landlords amend their hobby to raise the stakes and change their viewpoint to how they can maximise their income as their hobby! After all isn’t this what all these changes deserve?
Wages growing at 3.4% a year
Inflation growing at 2% a year
Rents growing at 1.8% a year
Looks like landlords are losing power and taking a real terms hit on their investments
Shock, horror. Never saw that coming. Doh.
Who would have guessed!! (Politicians excepted).
Isn’t this what shelter and tenants wanted to reduce up front costs? It was certainly predicted and what government expected.
Whilst this highlights the huge risk pointed out with the fee ban, it will just bring the subject of rent controls closer to the agenda. I’m sure the likes of Shelter will already have that campaign lined up.
So too will follow the next prediction should rent controls come into being…LLs will leave the sector. Except this time there won’t be anyone left to blame for housing problems.