Across the UK, eye-watering rent rises are adding pressure to renters who are already struggling with skyrocketing living expenses, displacing some residents, and stoking fears that the market is overheating. Rent increases are accelerating at their quickest rate since the financial crisis as a result of a mix of growing demand, sluggish rental housing turnover, and some landlords’ opportunistic attempts to pass on greater expenses to renters.
The average rent for new leases has grown by more than 10% over the previous year. A growing number of tenants are encountering financial difficulties and face the possibility of being evicted. Organisations that support renters warn that the market is overheating and that as a result, tenants run the risk of losing their homes. Though this is the current scenario, wading through difficult times can be made easier through professional expertise from experts letting agents in Harrow.
According to Office for National Statistics (ONS) data, landlords made 3.2% more money on average in the 12 months leading up to July 2022. It was discovered yesterday that real salaries decreased by historic proportions between April and June. As the UK battles its greatest cost of living crisis in decades, the escalating expenses, which are expected to be significantly higher for new leases, could force people into poverty or leave them homeless, according to housing groups.
According to recent research, residents in Britain are missing out on additional space while paying the same rent. Brits are giving up a second bedroom for the same rent they were paying in 2020. At £1,068 each calendar month, the average two-bedroom house now costs what the average three-bedroom property did just 16 months ago (pcm). What a typical two-bed cost two years ago, a typical one-bed costs today (£929 a month). To know the exact value of your home in Sudbury Hill, you can opt for property valuation in Sudbury Hill through trustworthy agents.
Due to strong rental increases, tenants’ finances are not as flexible as they once were. To pay the same amount for rent as they did in 2020, residents will have to downsize and give up a bedroom. Over the past 12 months, rents in the UK increased by an average of 8.3%, ranking as the sixth-strongest annual gain in the past ten years, despite rental growth slowing down for the third month. This indicates that rents have increased by 15.7% since COVID-19’s impact.
Studies show that the two years between July 2020 and July 2022 had the worst renters’ purchasing power decline. During this time, the average rent increased by 16.2% or £165 per month. More quickly than any place else in the nation, tenants in the South West have seen the value of their rent decrease. Rent increases of 18.7%, or £169 per month, in this area, caused a bedroom’s worth of spending power to be lost in just 16 months. Scotland and the North West followed after 17 and 19 months, respectively.
Tips to Deal with a Rent Increase in the UK
Your landlord is not permitted to raise your rent at any time or by any amount. Depending on your tenancy, they must abide by specific criteria if they want you to pay extra.
The best course of action if you object to your rent increase is to speak with your landlord and attempt to negotiate a lower monthly payment. You can dispute the raise if you can’t come to an understanding.
Verify your tenancy agreement
Depending on your lease type, your landlord must adhere to specific criteria before raising your rent. Typically, you’ll receive a “guaranteed short hold tenancy”. With this tenancy, your rent may be increased regularly, such as once a year. However, not all landlords will do this.
Striking an agreement with your landlord
Please inquire with your landlord about paying a little less than they recommend. For instance, advise meeting in the middle and paying £775 if your landlord wants to raise the rent from £750 per month to £800 per month. Instead of taking the chance of losing you as a renter, your landlord can offer a lower price. Consider the rental rates for comparable residences in your neighbourhood before attempting to agree. Make use of this as justification for not raising your rent.
If you and your landlord are unable to come to an agreement
If you believe that the rent increase is acceptable but still too expensive for you, weigh all of your options before moving. Check to see if you qualify for rent assistance. If you have a low income or receive benefits, you can be qualified for Housing Benefit (or payments for housing expenses through Universal Credit). If you want to go, be sure you’ve got a new place you can call home before you go. You might not be entitled to any help from your local government if you leave a home that had been affordable. Discover more about contacting the council for housing help.