Rents continue to rise across the UK - in the past year alone. Rents are now increasing faster than house prices on an annual basis for the first time since July 2013, with annual rent increases hitting the 5.6% mark across England and Wales. There is also some belief in the industry that recent tax changes to renting out property for landlords will be passed onto tenants, which will also push up rental prices.
However, according to some new analysis by estate agency Knight Frank the proportion of people renting in the private rental sector within urban areas has risen from 80% to 86% over the past 10 years. Properties within commutable cities such as Bishop’s Stortford and Saffron Walden still remain popular and have seen the largest increases.
Interest in rental property still remains strong. As demand continues to out strip supply, and obtaining a mortgage still remains a tricky process for first-time buyers; especially those buyers who do not have large deposits.
The English housing survey also showed that tenants are also staying longer in rental properties, stating that tenants have lived in their properties between two and four years, a rise of 4% compared to 10 years ago.
Rental prices have also been pushed up by an increase in wages as well as inflation. However their still remains a large gap in affordability for rental properties as wages lag behind, rental property increases. The proportion of people in rent arrears also jumped to 8.7%, up from 7.6% in May 2015 and 7.8% in June last year.
Readers might also be interested in: Tax Changes for Landlords