Generation Rent blames landlords for soaring rent prices outpacing wages

Generation Rent blames landlords for soaring rent prices outpacing wages

0:03 AM, 19th September 2024, About 3 weeks ago 43

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Generation Rent claims “landlords are snatching away more of renters wages” as rent prices continue to outpace wages.

According to the Office of National Statistics (ONS) Rental Price Index, private rents rose by 8.4% in the year to August 2024, outpacing the 5.1% increase in wage growth.

Over the same period, rents in England increased to £1,327, up by 8.5%; in Wales to £752, also up by 8.5%; and in Scotland to £969, marking a 7.6% rise.

Rents continuing to rise

In England, rents inflation was highest in London (9.6%) and lowest in the South West (6.4%), in the 12 months to August 2024.

According to the ONS, the average rent was highest in London (£2,129) and lowest in the North East (£682).

Ben Twomey, chief executive of Generation Rent, says rents are continuing to rise.

He said: “Prices in the shops may have stopped rising so quickly, but renters are still seeing our single biggest cost go up faster than our incomes. This isn’t news to renters, who have been feeling this squeeze for a very long time as our landlords snatch away more and more of our wages.

“The government’s Renters’ Rights Bill, published last week, offers many positives for tenants, but the cost of renting crisis will rage on unless Westminster slams the brakes on these runaway rents.

“This Bill must contain protection from these unaffordable rent rises, which should mean preventing rent rises going above wage growth or inflation – whichever is lower. Alongside this, we desperately need more homes people can afford to live in, in the places people want to live, and we are pleased that the government have set out this long-term aim.”

Housing market continues to improve

The ONS also reveals house prices rose by 2.2% to £290,000 in the 12 months to July 2024.

According to the ONS house price index, this growth, though down from 2.7% in June 2024, marks the fifth consecutive month of annual price increases following a period of decline.

In July 2024, the average house price in England was £306,000, a 1.6% increase from the previous year. In Wales, the average house price rose to £218,000, up 2.0% while in Scotland, it reached £199,000, a 6.0% increase from the previous year.

Nathan Emerson CEO at Propertymark says the housing market continues to improve.

He said: “It is reassuring to see further progress within the housing market as we continue to witness a consistent trend of growth as the year plays out. Overall, 2024 has proven to be transformative for the housing market with it facing a myriad of challenges at the start of the year and gathering pace to a far more upbeat performance as demonstrated by these latest figures.

“Propertymark remains keen to see the UK government kick start their house building programme to alleviate current pressures on housing demand and there is also a massive interest from those who aspire to buy to see and understand what support may be offered to boost their ability to get a footing on the housing ladder.”


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Cider Drinker

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7:11 AM, 19th September 2024, About 3 weeks ago

Please let me sit down with GR and I’ll teach them some maths.

Unfair taxation, rising interest rates, over regulation and increasing risk all contribute to higher rents.

This year, LHA rates in my area rose by 11%. The first rise in 4 years.

John McKay

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8:10 AM, 19th September 2024, About 3 weeks ago

Good luck with that one. Twomey will shut his eyes, stick his fingers in his ears and go 'Lah, lah lah'. He is not concerned with the truth, only promoting himself as the tenant's saviour.

Reluctant Landlord

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8:35 AM, 19th September 2024, About 3 weeks ago

lessons in economics needed GR!

Elizabeth Hill

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9:37 AM, 19th September 2024, About 3 weeks ago

They wouldn't understand basic economics if you slapped them with it. They have an axe to grind against landlords and that is all they care about - certainly not the tenants they claim to represent. Perhaps their rants would be better directed at the government who sold off council housing then failed to build sufficient replacements for the increasing population (meaning LL have to plug the gap between being housed and homeless);employers who pay minimum wage or offer zero hour contracts so tenants can't qualify for a mortgage (meaning LL have to plug the gap), or the banks/lenders whose ridiculous criteria make mortgages unachievable (meaning LL have to plug the gap). If LL leave, as they are doing, then where will all these people go? Maybe if Gen Rant think they can do a better job than us 'nasty landlords' they can put some skin in the game and take on all those offloaded properties and do something useful for their clientele, and show us how it should be done.........yep thought not!

Markella Mikkelsen

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9:41 AM, 19th September 2024, About 3 weeks ago

"Snatching away" - what a choice of words!
It sounds as if landlords are creeping behind tenants' backs and stealing their money.
Yet another gimmick to make landlords look bad. And not agood premise to start a productive conversation.
And yes, I agree with the other contributors: he is either clueless about how economics works in the real world, or pretending to be clueless for his own self-promotion and not for the benefit of the charity he is serving. Either of which is a sackable offense in my view.

moneymanager

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9:41 AM, 19th September 2024, About 3 weeks ago

"Generation Rent' needs lessons in economic? Not sure about that, I suspect that its true mission has little or nothing to do with renter's benefits, but rather it is a political Trojan Horse whose mission is to demonise and destroy the conventional PRS and corporatise the whole market with finance to build to ket to manage and profit by the likes of L&G and Black Rock.

Sold

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9:49 AM, 19th September 2024, About 3 weeks ago

Reply to the comment left by Cider Drinker at 19/09/2024 - 07:11
And despite all these government restrictions and taxations, rents still continue to rise! How is that possible? Maybe the fact governments have tanked the supply demand ratio over the past 20 years by allowing millions of migrants to move to a tiny island whilst not building enough new houses. 1.2 million new people arrived last year alone!

Northern Observer

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9:56 AM, 19th September 2024, About 3 weeks ago

Utterly clueless. Has he not heard of Section 24, has he not seen interest rates go from 2.2% to 5.5%, Maybe he should speak less and learn a little more, then maybe, just maybe he will begin to understand that for the average landlord costs have increased significantly and not just by 7 or 8% but by their 100’s… and even with a rent increase at 10% the landlord would still be making less than before they remortgaged and then there’s S24 to contend with. Would his renters accept a cut in their wages? No, thought not, but Landlords are expected to. Perhaps he should campaign to revoke S24 and provide a solution, not just the problem. But the guy is clearly a fool, so never will.

Ryan Stevens

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9:58 AM, 19th September 2024, About 3 weeks ago

What are Ben Twomey's qualifications/experience to be chief executive?

His rantings about landlords make him sound like a 2 year old. Has he not heard of market forces - lower supply=higher prices.

If he wants rents to be capped what does he think landlords will do? Carry on renting, or sell and invest elsewhere? Maybe he should go to Scotland and see how well its working up there.

Coastal

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10:00 AM, 19th September 2024, About 3 weeks ago

Reply to the comment left by moneymanager at 19/09/2024 - 09:41
Indeed, is all part of the 'engineered' process of future rentals being via big corps and banks. According to the WEF, by 2030 we will own nothing and be happy!

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