Rent squeeze forces single tenants to share

Rent squeeze forces single tenants to share

8:52 AM, 4th April 2024, About 3 months ago 10

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Single renters are feeling the pinch of rising rents more than ever with the percentage of people choosing to live alone dropping by 8% over the past three years.

The research from deposit alternative provider, Reposit, reveals the big shift in living arrangements is down to tenants adapting to the cost-of-living crisis.

This trend coincides with a sharp rise in rents, with single occupancy rents jumping by 26% (£181) from £696 in 2021 to £877 in 2023.

This increase outpaces the rent growth experienced by those in shared accommodation, where the average rent per person rose by £92 (20%) from £470 to £562 over the same period.

‘Single renters have been particularly squeezed’

The firm’s chief executive, Ben Grech, said: “With escalating rental costs and the cost-of-living crisis, single renters have been particularly squeezed.”

He says that tenants need deposit alternative products which allow them to pay one week’s rent as a non-refundable fee instead of the usual five weeks cash deposit – which now averages £1,289.

Proportion of a single tenant’s income spent on rent

The findings reveal that the proportion of a single tenant’s income spent on rent has risen sharply, from 33% in 2021 to 39% in 2023.

This translates to a yearly financial burden of £336 for single renters, based on average UK salaries rising from £31,772 in 2021 to £34,476 in 2023.

The figures, based on Reposit’s active tenancies across the UK, point to a link between rising rents and the decline in solo living.

The percentage of single-occupancy tenancies dropped from 65% in 2021 to 57% in 2023, with the biggest increases seen in two-person (+6%) and three-person (+1%) tenancies.


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Comments

Reluctant Landlord

9:21 AM, 4th April 2024, About 3 months ago

...and with ever increasing legislation, threats from Councils, additional licencing requirements (with costly upgrades needed) for properties who now let to three unrelated people, threats of no help with anti social tenants, courts stalling possessions.........the number of landlords willing to let single rooms/house shares is dropping fast...despite the clear need for more!

TJP

12:19 PM, 4th April 2024, About 3 months ago

Reply to the comment left by Reluctant Landlord at 04/04/2024 - 09:21
but all in the interest of "driving up standards"

Reluctant Landlord

12:43 PM, 4th April 2024, About 3 months ago

Reply to the comment left by TJP at 04/04/2024 - 12:19
...which is perfectly fine IF the market itself is asking for that change AND consumers are aware and willing to pay for that increase in 'standards' that result.

Not only that, but new investment will follow and more property built and released.

If tenants are up in arms already about what they see as unsustainable rent levels then its a clear indication that the primary issue is not current standards at all but supply.

Cider Drinker

17:35 PM, 4th April 2024, About 3 months ago

Some landlords let two bed properties to two single benefits claimants. Some are in relationships but claim the shared accommodation rate of LHA which is (combined) 33% higher than if they admit to living together - when they would only qualify for the one bedroom rate. And they get a 2 bedroom house.

Martin Roberts

22:18 PM, 4th April 2024, About 3 months ago

Annual 'burden' for single renters is £336.

92p Per day…

Reluctant Landlord

7:44 AM, 5th April 2024, About 3 months ago

Reply to the comment left by Cider Drinker at 04/04/2024 - 17:35
is this really a thing and is this within the rules as far as DWP go?? Surely that would mean two AST's at the same property and how is council tax determined?

Reluctant Landlord

7:45 AM, 5th April 2024, About 3 months ago

Reply to the comment left by Martin Roberts at 04/04/2024 - 22:18
less than the cost of the fluff on top of a latte....

Mick Roberts

15:20 PM, 5th April 2024, About 3 months ago

Reply to the comment left by Reluctant Landlord at 05/04/2024 - 07:44
It's generally done with a Joint tenancy.
Putting aside the single or couple, this is becoming very common.
I've been doing it years for more income, but also to help the ie. 40 year old mother & 20 year old daughter out living together, two separate claims or UC punish them for being on Mums claim.
I stopped doing it around 2018 as extra paperwork, but having to do it again now, as 25 year old daughter can't leave Mum, can't get anywhere, so putting her on Joint tenancy with Mum which then helps Mum out in paying less or zero top up.

Reluctant Landlord

16:47 PM, 5th April 2024, About 3 months ago

Reply to the comment left by Mick Roberts at 05/04/2024 - 15:20
every day a school day. I have never considered this. Have always gone down the joint tenancy and demanded direct payments from UC as part of the contract from the start - assuming they have to have a joint claim because they are living together...

Just done the maths and I wont get any more rent that what I am currently asking as that's market rate, but it may mean its more attractive to say an older parent and middle aged daughter (as in your example) as if they claimed shared rate then the total top ups would be less if they claimed separately.

It would mean I need to detail this in the AST and request two direct payments, one from each of them though rather than one.

Am I missing something else here?

Mick Roberts

17:36 PM, 5th April 2024, About 3 months ago

Reply to the comment left by Reluctant Landlord at 05/04/2024 - 16:47
It's a bit more technical Reluctant. Always Private message me & tell me in case I miss it. U can ring me & I'll tell u what's what.
UC does have some positives.
You couldn't do this on old HB if kid had already been dependent in same house. UC allow it.

Can u get direct UC payments if on tenancy?

You can get and are ALLOWED as much rent as UC will pay. We take less for years & we have to make it up when we can.
So let's say your market rent is £900 & your tenants are allowed £550 each, u can charge £1100 as long as in agreeance with tenants.

You also help the tenants if they paying a top up now & joint tenancy can get rid of any money they paying out their own pocket.

Also throw away shared rate on UC. IF IF over 35, they allowed the 1 bed rate. No need for shared any more.

Please advise me on this direct payment if on tenancy as u may have been fortunate if just the one.

I'm not joint tenancy expert, but I know the joint tenancy stuff on HB & have been reluctantly learning again on UC. Not a lot to know really, it's quite simple apart from these instructions below you have to tell tenants to write on UC journal, as UC words mislead tenants & they get half of what they were expecting if tick the wrong box.

Before anyone shoots me down for the below, they are rough questions to get the UC tenant going. If u know better, please say.

From memory:

Joint tenancy UC questions when moving house and Reporting a change

Is anyone else on the tenancy agreement Yes

Rent £XXXXpm
Don't live with anyone else.
If question Do you share the rent with anyone else, Yes.
Landlords detail's
Mick Roberts
My address:
XXX
Tel: 079XX

When it says Is your name on Council tax bill.
Tick yes.
Cause u have to do that at same time in their dream world.
Yes forget joint tenant needs to claim Council Tax discount too.
I have single page form if u don't want their horrendous online one.

When it says People who live with you.
Tick No.
As this is the bit everyone gets confused with and u would think Yes. Which then UC say Oh they can pay your rent then.
Tick No as they don't live with u. They are on their own UC claim and don't come in your bedroom. Bit like HMO claim.

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