0:02 AM, 16th September 2024, About A year ago 7
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Renters are paying the price as demand becomes scarce and costs rise, says Hargreaves Lansdown.
The firm reveals that many landlords are selling off properties due to fears of a potential capital gains tax increase in the upcoming October budget, while tenants are now spending a significantly larger portion of their income on rent.
The news comes after the introduction of the Renters’ Rights Bill in Parliament, which is expected to ban Section 21 as soon as the Bill becomes law, regardless of the current court backlog.
According to the Office for National Statistics (ONS), renters spend 28.8% of their income on the rent – up from 26.6% a year earlier and 25% five years earlier.
Sarah Coles, head of personal finance, Hargreaves Lansdown: “The white heat of the cost-of-living crisis may have cooled for an awful lot of people, but renters are still getting burned. And as more people further up the income ladder loosen the purse strings, they’re missing some vital bills. These weaknesses in people’s finances could come back to bite them.
“There’s no let up in the squeeze on renters. They’re now spending a far higher percentage of their income on keeping a roof over their head, and the proportion of their income they’re having to hand to the landlord is rising faster than at any other time in the past five years.”
Ms Coles says renters are struggling with finding a place to live as landlords sell up.
She said: “Landlords are continuing to sell up – concerned about higher costs from more regulation and bigger mortgage payments. More recently, the trend has been exacerbated by landlords alarmed by the prospect that the government could hike capital gains tax in the Budget.
“It means more tenants chasing dwindling numbers of properties, so they’re having to pay through the nose to find a place to live.”
Ms Coles adds for those with mortgages there is positive news as the Bank of England could cut rates again.
She said: “Attention has been focused on the pressure on those with mortgages now that interest rates have risen, but compared to renters, they have nothing to worry about.
“The HL Savings & Resilience Barometer in July found that those who have remortgaged onto a higher rate between the end of 2022 and the middle of 2024 have an average of just £315 left at the end of the month – £95 less than those who are yet to remortgage. But compare that to renters – who have just £79 left at the end of the month.
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Section 8 Renters' Rights Bill 2024?
northern landlord
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Member Since March 2022 - Comments: 349
11:53 AM, 16th September 2024, About A year ago
Financial considerations are only one factor behind landlords selling up. There are many landlords without mortgages on their properties who just want out of the PRS. Many landlords are older and just want to enjoy the value of their assets in retirement. These landlords may see the prospect of the Renters Rights Bill that could potentially put a block on selling up, or at best make it very difficult to evict tenants to get the market price as a factor. This along with potentially expensive EPC upgrade requirements and the prospect of registration schemes, ombudsman schemes, decent home inspections by council jobsworths and rent controls is another factor.
Notice the use of the word “potential” nothing breeds fear like ignorance. Maybe it won’t be so bad. Discretion is the better part of valour, are the wise landlords not hanging around to find out what the reality may be. We need clarity about the future.
Mr Blueberry
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Member Since August 2023 - Comments: 63
17:18 PM, 16th September 2024, About A year ago
A question I cannot fathom and answer to, is ( and I would like an honest answer): – Does the Government want rid of private Landlords and if so why? The Minister say the new legislation should not worry good landlords but this is clearly a misplaced comment. Answers please..
Reluctant Landlord
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Member Since September 2018 - Comments: 3338 - Articles: 5
18:17 PM, 16th September 2024, About A year ago
Reply to the comment left by Mr Blueberry at 16/09/2024 – 17:18
government don’t need to answer that question. In their eyes its completely irrelevant.
They are only concerned only with ‘protecting tenants rights’ and act accordingly in their best interests. (Read into that what you will…as words and actions completely different!)
Fed Up Landlord
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Member Since June 2013 - Comments: 1121
20:16 PM, 16th September 2024, About A year ago
This government wants to destroy the PRS. The previous government just wanted the votes from it.
We are now being run by an extreme left wing socialist marxist government. The state will provide. Everything including housing. Marx advocated the abolition of private housing and inparticular landlords as rent was paid for out of the wages of the proletariat ( the workers) to the bourgeoisie ( the property owners)
Two Tier Kier and his merry band are essentially marxists. And they want to sequestrate private property for the state.
Get out now while you can.
Bristol Landlord
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Member Since August 2014 - Comments: 175
20:33 PM, 16th September 2024, About A year ago
Dear Mark Alexander, why is P118 continually blocking my comments, apparently if I mention Govt corruption?
Anyone with a brain knows the Govt is deliberately driving out landlords and I believe it is due to corruption.
Why can this not be stated on P118, is it really too controversial?
What are you afraid of?
True Owner
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Member Since February 2024 - Comments: 3
21:40 PM, 18th September 2024, About A year ago
I think people have no conscience at all, they don’t think what would be the conqueces of their actions, the poor tenants are the most hardest hit they have relocate themselves, again and again, the families have childrens.
5h
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Member Since September 2018 - Comments: 8
23:22 PM, 20th September 2024, About A year ago
Corrupt mismanaged Gov and councils will tax their incompetence until nothing is left just like any other failed communist country. Those who don’t know history are destined to repeat it.