Rented Housing – Parliamentary Written Answer

Apsana Begum: To ask the Secretary of State for Housing, Communities and Local Government, whether he plans to introduce a cap on rent rises that is linked to inflation.

Christopher Pincher: Landlords cannot in general increase rent without their tenant’s permission, and there are no plans to change the rules regarding rent rises. The Government does not support the introduction of rent controls to set the level of rent at the outset of a tenancy. Historical evidence suggests that these would discourage investment in the sector, and would lead to declining property standards as a result, which would not help landlords or tenants.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-10-30/109709 

Rent Costs Hit Record High

The private rented sector has seen sharp rent increases due to the tenant fees ban, an outflow of landlords from the market, and Brexit uncertainty. The supply of rental accommodation increased in 2019, from 187 on average per branch in 2018, to 197 this year. As landlords continued to feel the pinch, the number of buy-to-let investors selling their properties remained high, at an average of four in 2019. In April, the figure spiked to five per branch. The number of tenants experiencing rent hikes hit a record high this year, rising from an average of 26 per cent each month in 2018, to 46 per cent on average this year. Read more on the ARLA website.

https://www.arla.co.uk/news/december-2019/prs-2019-trends/

Rent Costs Fall But Offer Little Reassurance For Tenants

The number of tenants experiencing rent rises fell by eight percentage points in October with 50 % of agents witnessing an increase in rent prices, down from 58% in September. According to the ARLA Propertymark PRS report for October, this is the lowest figure since June 2019, when the number of tenants experiencing rent rises was 55%. However, year-on-year, this figure is up from 24% in October 2018, and 22% in October 2017. Find the report on the ARLA website.

https://www.arla.co.uk/media/1048509/prs-report-october-2019.pdf

Rent Rises Slow Down During September

The latest data released by ARLA Propertymark has revealed that the number of tenants experiencing rent rises decreased in September but remained high overall, with 58 per cent of agents witnessing an increase in rent prices. According to the numbers, year-on-year, this figure is up from 31% in September 2018, and 27 per cent in September 2017. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/landlords/rent-rises-slow-down-during-september.html

The UK Cities Where Rent Is Rising The Fastest

The cost of renting a home rose fastest in Nottingham, Leeds and Bristol in the past year, research indicates, while Aberdeen recorded the biggest fall. The survey, from property website Zoopla, said tenants moving into a Nottingham home this summer paid 5.4% more in rent than a year earlier. Leeds and Bristol (up 4.5%) were the only other UK cities where rents rose faster than UK average wage growth. On average, renting a UK home has become more affordable, Zoopla said. Part of the reason lies in an increase in the number of people buying their first own home, relieving some of the pressure on the rental sector. Read more on the BBC website.

https://www.bbc.co.uk/news/business-50056177

Rents Rise But Fail To Keep Pace With Inflation

Average UK rents rose between July and September but failed to keep pace with inflation, according to the latest edition of The Deposit Protection Service (The DPS) Rent Index. The stats show the average increased by £7 (0.91%) to £778: less than half the rise in inflation (1.90%) during the period – with some 32% of wages now spent on rent. Two consecutive quarterly increases have seen rents reach the highest value since the Rent Index launched in 2017 following a period of decline during 2018. Read more on the DPS website.

https://www.depositprotection.com/news/latest-news/2019/the-dps-rent-index-q2-2019-is-out-now/

Tenant Demand Sustains UK Rents At Record High For Fourth Consecutive Month

The latest data and analysis from ARLA Propertymark has revealed that, across the UK, the number of tenants experiencing rent rises rose to the highest figure on record during August. According to the figures, the number of tenants experiencing rent rises rose marginally in August, with 64 per cent of agents witnessing landlords increasing them, compared to 63 per cent in July. Year-on-year, this figure is up from 35 per cent in August 2017, and 40 per cent in August 2018. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/landlords/tenant-demand-sustains-uk-rents-at-record-high-for-fourth-consecutive-month.html

More Freedom On Rents Will Mean Greater Scrutiny, Says Regulator

The ability to raise rents under the new Rent Standard will be accompanied by greater scrutiny, including from government, the chief executive of the Regulator of Social Housing has said. With the end of the four-year rent cut and the implementation of the regulator’s new Rent Standard, which applies to housing associations and local authorities, providers will be able to increase rents by up to Consumer Price Index plus one per cent over the 2020 to 2025 period. This greater freedom in rent-setting will come with greater scrutiny by stakeholders, “including government”. Read more on the Social Housing website.

https://www.socialhousing.co.uk/news/more-freedom-on-rents-will-mean-greater-scrutiny-says-regulator-63474?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Rents Rocket but Capping Is Not the Answer

Rents in London are rocketing due to a squeeze on the private rental market that has dramatically reduced the supply of homes. According to property website Home.co.uk, there were just 18,700 newly advertised properties to let in Greater London last month, compared to 28,800 in June 2017 - a drop of 35% in the number of rental properties over two years. With demand for rented accommodation in the capital still strong, this decline in supply has led to a marked increase in rents. Read more on the HomeUK website.

https://www.home.co.uk/company/press/london_rents_rocket_but_capping_is_not_the_answer.htm

Tenants Suffer As Rents Soar Due To Tenant Fees Ban

The lasts ARLA Private Rented Sector report finds that;

·         The number of tenants experiencing rent rises increased to the highest figure on record in June.

·         The number of properties under management dropped marginally to 199 per member branch.

·         Demand from prospective renters increased, with the number of house hunters registered per branch rising.

·         The number of landlords exiting the market remained the same

Download the report from the ARLA website.

https://www.arla.co.uk/media/1048158/prs-report-june-2019.pdf

Rents In England Rise As Tenant Fees Act Approaches

UK rents for new tenancies have begun to rise at a rate not seen in the market for over two years, with the annualised picture showing rental values having increased at a higher rate than was seen in 2018 – rising by 3.3% in the last 12 months. The latest HomeLet Rental Index outlines a move away from the normal fluctuations in the private rental market, with rents for new tenancies now rising at a rate above inflation – one that has not been recorded since October 2016. Read more on 24housing.

https://www.24housing.co.uk/news/rents-in-england-continue-to-rise-as-tenant-fees-act-approaches/

Rents In UK Will Rise For Next Five Years

UK rents are expected to climb by 15% over the next five years, as the supply of rental accommodation dwindles while demand from tenants continues to go up. Rents are expected to increase by nearly 2% across the UK over the next 12 months, according to the latest survey from the Royal Institution of Chartered Surveyors (Rics). Small landlords are selling up following tax changes that have made buy-to-let properties less lucrative. Rics said they are being hit by the withdrawal of tax breaks and the extra 3% on stamp duty on second homes. Read more on the Guardian website.

https://www.theguardian.com/business/2018/aug/09/rents-in-uk-will-rise-for-next-five-years-experts-predict

Supply Shortage Could Push Rents Up 15%

Rents could rise 15% by 2023 as the supply of new rental properties dries up, according to a survey by the Royal Institution of Chartered Surveyors (RICS). It said small scale landlords are pulling out of the market. It blamed tax changes brought in last year which have made Buy-To-Let investments less profitable. RICS said it was time that the government looked again at the way the private rented sector was regulated. It said its members have seen the supply of new rental property falling consistently for two years. Meanwhile, the majority of its members are seeing steady increases in the number of people looking to rent, although the numbers are levelling off. Read more on the BBC website.

https://www.bbc.co.uk/news/business-45113867

Bank Of England Interest Rate Hike Could Lead To Rent Rises

Last week’s interest rate growth to 0.75 per cent is likely to leave many landlords with no choice but to pass on costs through higher rents. Despite the recent stamp duty increase on second properties and the capping of mortgage interest tax relief at 20 per cent for all rental income, the majority of landlords have avoided shouldering tenants with the bill. However, landlords currently on tracker mortgages could see their bills rapidly increase. A tracker mortgage matches any rise in the base rate, and will find that an extra 0.25 per cent will add £12 per month to a £100,000 remortgage payment. It will also add £25 to a £200,000 loan. Read more on the RLA website.

https://residentiallandlord.com/bank-of-england-interest-rate-hike-could-lead-to-rent-rises/

‘Renters In For A Rough Ride’ In 2018

Rising rents and an increasing number of households renting meant that 2017 was a record year for rent, with the total rent bill rising to £1.8 billion, according to the latest figures from Countrywide. Meanwhile, ARLA Propertymark’s latest survey of its letting agents reveals that almost one in five (19%) tenants saw rents go up in January 2018 – as compared to 16% in December. The number of properties its letting agents managed dropped by 8% in January, with 185 properties per branch, compared with 200 in December 2017. Read more on the Moneywise website.

https://www.moneywise.co.uk/news/2018-02-23/renters-rough-ride-2018

Rents Rise Gently - But Tenants May Be Persuaded To Pay More

The latest figures from LSL Property Services suggest that rents have increased across the UK by an average 2.5 per cent in the past year with yields stabilising in most areas. The average UK rent is now £829 per month and over the past 12 months only two regions - London and the North East - have seen falls. While the strongest growth has been seen in southern areas in recent years, rents in the North West and East Midlands grew faster than anywhere else in the year to the start of February with the typical monthly rent in these regions 2.9 per cent higher than 12 months ago. Read more on the Letting Agent Today website.

https://www.lettingagenttoday.co.uk/breaking-news/2018/2/rents-rise-gently--but-tenants-may-be-persuaded-to-pay-more-says-lsl

Hundreds Of Thousands Living In Squalid Rented Homes In England

Rented housing so squalid it is likely to leave tenants requiring medical attention is being endured by hundreds of thousands of young adults in England, an analysis of government figures has revealed. Rats, mouldy walls, exposed electrical wiring, leaking roofs and broken locks are among problems blighting an estimated 338,000 homes rented by people under 35 that have been deemed so hazardous they are likely to cause harm. It is likely to mean that over half a million people are starting their adult lives in such conditions, amid a worsening housing shortage and rising rents, which are up 15% across the UK in the last seven years. Read more on the Guardian website.

https://www.theguardian.com/society/2018/jan/28/hundreds-of-thousands-living-in-squalid-rented-homes-in-england

Tenants In Scotland And London Most Concerned About Rent Rises In 2018

Tenants in parts of the UK are concerned about their rents rising in 2018 with those living in London and Scotland most worried about, new research shows. Some 52% of those living in London and 55% of those in Scotland expect their rents to increase and more than a third in all other English regions are also expecting rents to rise. In London 9% expect rents to go up a lot. Overall, 42% of tenants in all regions said they would not be able to afford any increase in monthly rental repayments, compared to just 11% of mortgage holders. Read more on the Property Wire website.

Surge Of Rent Increases Subsides

Demand for rental accommodation rose by 10% month on month in September, while supply remained the same, according to the latest ARLA Propertymark PRS report.  After several months of rising rent costs, the report reveals signs that the rental market is moving in the right direction, marking the first month-on-month decrease since May, when the figure also stood at 27%. Year on year however, the number of tenants experiencing rent hikes is up; in September 2016, only 24 % agents reported this. In September, there were 79 prospective tenants registered per member branch, up 10% from August when there was 72 per branch. The number of properties managed per member branch remained the same in September, at 189. Read more on the ARLA website.

Rent Control The Way Forward Say Labour

The first political conference of 2017 kicked off in Brighton on 27 September, with Labour Leader Jeremy Corbyn announcing that if they win the next General Election, they will introduce rent controls for the private rented sector. Rent control has been promised by Labour as far back as 2015, with their Party Manifesto claiming, "For the 11 million people who rent privately, we will legislate to make three-year tenancies the norm, with a ceiling on excessive rent rises" and later in their 2017 manifesto "Labour will make new three-year tenancies the norm, with an inflation cap on rent rises.” Read more on the ARLA website.