Renting in 2022
According to the new data from Rightmove the average private rent has hit a record high, jumping by more than 20% in some parts of the country. We are seeing the rising interest of our customers towards properties they can buy to let. Three-quarters of private sector landlords have come up with the initiative to help their tenants cope with the cost-of-living rise.
A research carried out by bank Shawbrook suggests that:
- at least one in four landlords freeze the amount of rent they charge;
- around 22% or landlords allow their tenants to take a “payment holiday”;
- one in five landlords have reduced their rent;
- 19% have offer to include the cost of bills in rent;
What a great initiative!
According to leading property experts, latest rental market reports show that tenants began to look for smaller homes to reduce the increased cost-of-living. Two-bedroom flats are becoming more and more popular. Let us mention that just a few months ago a three-bedroom family home was at the top of the search for a rented property.
These reports also show that the rents for new lets have increased in average by £120 per calendar month during the last few months.
Emma Cox, managing director of real estate at Shawbrook, said: “In order to have a fair and sustainable rental market, it’s vital that landlords are open to supporting their tenants through hard times… Reducing rents or offering payment holidays will help tenants during the worst of the crisis and get them back on their feet.”
As if responding to these words, around 26% of landlords began to improve the energy efficiency of the properties they let. The improvements include insulating, installing double glazing, replacing old electric appliances to new more energy efficient, or even putting in a new boiler.
The Shawbrook research discovered that in order to cope with the increased living costs, more than 50% of private tenants had already changed their way of living. Yet, the struggle to cover all their bills are ongoing.
Many landlords recognise the pressure high inflation has put on their tenants. They face a situation when they have to decide whether putting their rents up to be in line with the inflation will be effective. Or it will be cheaper for them to freeze rent or offer a payment holiday, rather than face the costs and void periods associated with finding new tenants.
Interestingly, the Scottish government in the package of measures to help people cope with increases to the cost of living has announced that rents in both the public and private sector would be frozen until March 2023. It has also introduced a moratorium on evictions, meaning landlords will not be able to force tenants to leave their homes, even if they fall behind with their rent.
Campaigners are calling for a similar rent freeze and eviction ban to be introduced for tenants in other parts of the UK.
So far, the UK government has launched a consultation on introducing a cap on rent increases for people living in social housing, such as council and housing association homes. The cap would be set at 3%, 5% or 7% from 1 April 2023 to 31 March 2024.
It has also included measures to protect tenants from unfair rent increases and ban no fault evictions in the Renters Reform Bill. This Bill will be introduced during the current parliamentary session.
No measures are being discussed with regards to tenants of the private sector.
If you are struggling to pay your rent, we suggest you should contact your landlord as soon as possible and discuss your problem with them. According to the research 14% of landlords, who had not made any changes to their rent in response to the cost-of-living squeeze yet, would be prepared to do so if their renters were facing financial difficulties.
You are more likely to be successful if you suggest a plan to your landlord, such as paying a reduced rent for some time, before resuming full payments.
Living in a rented accommodation for a short period of time might be a good idea for those who are in the middle of exchanging homes.
If you are thinking of becoming a landlord, or are ready to buy your new or next house, Houso is a property search app which will help you – download Houso today to start looking for the one that is just right!