29th
Jun 2022
12,000 PRS tenants took part in a recent survey which suggests that around 75 per cent have serious concerns whether they will be able to carry on paying rent due to the cost of living crisis; at the same time a survey of 1,000 landlords was held alongside that rental arrears are a major worry.
The surveys were held by a trade insurance and tenant referencing firm.
Latest figures show that rent takes up around an average of 30.5 per cent of UK tenants’ gross monthly income with Northern Ireland at 23 per cent of income up to London’s 34 per cent.
Unsurprisingly the research finds that more than three quarters of renters believe inflation will moderately to significantly impact their ability to pay their rent.
A quarter of tenants put this at the top of their ‘worry’ list in the current economic crisis over the next year and not far behind are concerns over landlords raising their rent.
Only 11 per cent of tenants said the cost of living crisis will have little if any impact on them.
From the recent landlord survey 36 per cent are not planning to increase rents on any of their properties for the next 18 months, however 40 per cent belive they will raise rents on one or more properties, half of them will be doing so because of ever increasing costs.
Landlords have major concerns over rental arrears rather than the scrapping of Section 21 notices as well as legislative and tax changes.
A spokesperson for the firm, says: “Many people in Britain are facing a financial crisis. We have the perfect storm, ramping inflation, interest rate increases and war in Europe that exponentially impacts utility prices.
“Landlords know the pressure on tenants, but many landlords must increase the rent because the cost they face is growing.
“Landlords and tenants are people; both groups are equally affected, as our letting agent businesses. Add to this crisis the government interventions, which make life even more difficult for all concerned in the rental sector.
“The rental market plays a critical role in satisfying the UK’s housing needs; there simply isn’t enough housing stock. Many landlords are choosing to exit the market, which only causes further strain on stock levels and letting agent businesses.
“The government’s commitment to legislation in the market through the Renters’ Reform Bill will provide the most significant change to rental law in a generation, and I can’t see any positives.”
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