20th
May 2022
Recent claims from Zoopla and others that over the last twelve months rental inflation has reached double digit figures is contradicted by official stats shows the average rent only increased by 2.7 per cent from April 2021 – 22.
Upon hearing the ONS’ lower figure, an industry body’s spokesperson said: “The private rented market needs significant investment just to get it back to the point where it can cope with the demand which has been pushing rents up sharply in recent months, adding to the cost of living.
“Many landlords are already selling up and our member agents tell us those properties are not staying in the rental market. One says properties available to rent are down 47 per cent with inquiries from potential tenants up 60 per cent. This is unsustainable.
“In renewing its commitment in the Queen’s Speech to getting rid of Section 21, the quickest and simplest mechanism by which a landlord can regain possession if needed, the UK Government has said it will strengthen legitimate grounds for taking possession of a property.
“We need to know what that will look like without delay if this important area of the housing market is to regain the confidence of investors.”
Managing director of real estate at a buy to let lender Emma Cox, says: “A slowdown could be on the cards for the property market with inflation close to hitting double figures in April.
“… For those waiting to get onto the property ladder, the private rental sector will play an important role in offering safe and secure housing. Landlords will be keen to adapt their properties in order to suit tenant demand. Energy efficiency will be a priority, particularly with the EPC proposals currently on the table and rising energy prices.
“Tenants have already started to look for properties with bills included within the rent in order to mitigate against any future rises. Landlords looking to attract tenants and stay compliant will likely be expediating their renovation plans to improve the EPC ratings of their properties.”
And of course the ‘dogs of war’ were out in force as Generation Rent totally dismissed the official figure in its tweet saying “Private rents are rising at their fastest rate since 2016. With inflation at 9.0 per cent and energy prices expected to rise further, that means tenants will get ill, go hungry or fall behind on rent and face eviction.”
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