‘Cost of renting crisis’ is proving HELL for flat-hunters in big cities: Landlords battling energy bills raise rents to record highs with 20% hike in Manchester and 15% in London – with tenants reporting up to £700 rise in monthly fees
- Landlords and agencies are raising rents amid high demand and lack of supply
- Rents in Britain have now hit record highs, increasing by more than 20% year on year in some areas including Manchester, and 15.8% in London
- Some tenants are reporting up to £700 per month increases in rent
A ‘cost of renting crisis’ is turning property-hunting into a nightmare for young professionals.
Landlords and agencies are raising rents to record levels amid high demand for housing – and a lack of supply – at a time when millions face financial troubles due to rising energy bills, the Observer reports.
Rents in Britain have now hit record highs, increasing by more than 20% year on year in some areas including Manchester, and 15.8% in London, data from Rightmove shows.
Some tenants are reporting up to £700 per month increases in rent, meaning their landlords are effectively forcing them out, while others who have moved out of flats say their former homes were relisted for double their original price.
It comes as Ofgem’s latest price cap rise is set to affect 24 million households and send the cost of using appliances rocketing.
An 80 per cent rise in the energy price cap will take place on October 1, taking the average household’s yearly energy bill from £1,971 to £3,549.
The estate agents membership organisation PropertyMark found in a survey that letting agents received on average 127 new applications per branch in July but only had 11 properties available for rent.
Part of the shortage is due to many landlords selling their properties, taking advantage of high prices in the sales market, but also fewer tenants are moving from one rental property to another, according to property consumer advice body Move IQ.
‘Nearly three quarters of Propertymark’s letting agents say they have seen an increase in renters renewing their tenancies over the past 12 months,’ says Phil Spencer – known for co-presenting Channel 4’s property show Location, Location, Location.
‘By contrast, if tenants move to a completely different property, they are likely to feel the full force of rent increases. More than eight out of 10 agents have reported rent increases in the past month. That’s a new high, with some of those rises being in excess of 10%.’
Rents in Britain have now hit record highs, increasing by more than 20% year on year in some areas including Manchester, and 15.8% in London, data from Rightmove shows (pictured: Primrose Hill, London)
Mr Spencer adds: With a cost-of-living crisis accelerating fast… Tenants are amongst those in the front line of our troubled economic times.’
Civil servant Beth Holloway, 23, sent hundreds of enquiries out to agencies, attended more than 20 viewings, and placed 10 offers for properties over a three-month period.
But Ms Holloway – who has a stable job, does not smoke, and has no pets – and her friend who she was flat-hunting with were outbid each time they put an offer in.
She said: ‘We’ve offered £200 over [the listed price] and not got it because someone else offered six months upfront. I’ve heard of people offering £500 or £600 over or offering to pay a year upfront in cash.’
Sometimes she would attend a pre-arranged viewings to find 15 people in the queue ahead of her, while other times she would call to arrange a viewing only to be told that the property was already gone, despite being posted online just minutes earlier.
Research manager Max Wilson, 27, said he decided to move out of his flat – where he had stayed for three years – following ‘years of mice and cockroaches’.
When trying to use SpareRoom, Britain’s most popular flat and house share site, he found it to be a ‘crazy place of auditioning your personality’ with ‘hundreds’ of people all vying to secure the same room.
After a two-month search he eventually got a ‘very nice but very overpriced’ flat in Oval, south London.
‘It was probably the most stressful time of my life,’ he said.
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