40 per cent of adults struggle to pay rent
40 per cent of adults are finding it difficult to pay rent or mortgage payments, data has revealed.
Recent figures released by the Office of National Statistics (ONS) show an increase from last year’s report of 30 per cent.
Average rents rose to £1,278 per month outside London, and a surging £2,627 inside the capital, the ONS stats founds.
The average rent price in the UK has increased by 8.9 per cent since September 2022 and by 1.38 per cent since August this year.
Landlords have been facing increasing financial pressures due to high mortgage rates and the increase in tenant demand and fall in supply due to landlords selling up have created this spike in rental prices.
Following the fall in rental supply, potential tenants have also been offering over the asking price to secure themselves a home.
Rightmove revealed the average rental property now receives 25 enquiries from tenants – more than triple the number of enquiries before the pandemic when there were eight on average.
HomeLet’s chief executive, Andy Halstead, says he doesn’t “hold out much hope” that a solution to fast-rising rents will be found soon.
Private rental prices in London, which accounts for almost a third of UK rental expenditure, reportedly increased by 5.9 per cent above the England average in the 12 months up to August 2023.
This was its highest annual rate since the London data series began in January 2006.
During last week’s Labour party conference, Angela Rayner opened the annual gathering by committing to improving and strengthening the housing crisis, accelerating other measures in the repeatedly-delayed Renters Reform Bill.
The bill includes abolishing assured shorthold tenancies (ASTs), meaning no more Section 21 notices or ‘no fault’ evictions, and providing tenants at least two months notice of rent increase.
Whilst the Conservatives did not mention any details on housing reform, social rent, or home-ownership at their conference earlier this month.
However, the government has said they plan to have the renters reform bill passed into law during this parliament – currently due to run until January 2025.