Private renters have seen rents increase by as much as 15per cent since last Christmas, while some prospective tenants are so desperate to find suitable accommodation that they have offered landlords inducements to take them on.
With a dire shortage of homes available for rent from councils and social landlords, private renters have started to offer up to a year’s rent in advance to try to secure their tenancy, it has been reported.
Property experts suggest that tax changes for private landlords introduced by Gideon Osborne when he was Chancellor has prompted a real reduction in the number of people who are prepared to let their properties out.
Figures on the UK rental market from Ocasa reveal that tenants in London have endured bigger rent price increases than anywhere else in the country since last Christmas.
In London, rent has increased by 14.8per cent in the past year, which means on average rent has grown from £1,752 per month to £2,011.
Jack Godby, the sales and marketing director at Ocasa, said, “Rents are increasing because landlords are passing on the additional costs they’re dealing with due to the cost of living crisis, not least the soaring price of energy.
“On top of that, rising mortgage rates means many landlords are being forced to up their prices to avoid making a loss on their investments.”
Godby says that many landlords are struggling to get finance for new property investments because many high street lenders have removed their buy-to-let mortgage products. “Rental stock is dwindling while tenant demand remains strong,” Godby said.
“It’s going to be a difficult Christmas for many tenants. Until the dangerous imbalance between rental market demand and stock supply is remedied, it’s the nation’s tenants who will continue to suffer from the ever-increasing cost of renting.”
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