Scotland’s rent freeze based on ‘skewed numbers’
3 years ago | 3 comments
Renters see biggest annual rent rise since 2016
12:03 AM, 15th December 2022, 3 years ago
13
Tenants have seen rents rise yet again with the Office for National Statistics (ONS) reporting that rent prices grew by 4% in the year to November.
The latest Private Housing Rental Prices index highlights that rents were slightly higher in last month than October’s 3.8%.
However, the annual percentage change is the largest recorded by the ONS since January 2016.
Rents outside of London grew by 4.2%
The rents being paid outside of London grew by 4.2%, from October’s 4.1%, and in the capital, they grew by 3.5%, up from a 3% rise in October.
When the regional variations are analysed, private rents grew annually in England by 3.9%, in Wales by 3.1% and in Scotland by 4.4%.
The highest annual percentage change for rent was for landlords in the East Midlands at 5.1%, while landlords in the North East and London saw the lowest rise of 3.5%.
‘London finally saw a slight decrease in renter demand’
Commenting on the latest ONS figures, Gareth Atkins, the managing director of lettings at Foxtons, said: “After an uncharacteristically busy October, London finally saw a slight decrease in renter demand, in line with the usual seasonal trend for November.
“It also saw a slight increase in new listings, which goes against the usual trend – an especially welcome surprise in a year of low lettings stock.”
He added: “However, there were no sweeping adjustments in the November market; rental prices were only slightly below recent record highs, demand year-to-date was still 15% higher than 2021, and supply was still 33% lower year on year.”
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Member Since January 2011 - Comments: 12207 - Articles: 1403
3:43 AM, 15th December 2022, About 3 years ago
Isn’t it interesting that the ONS report the statistics this way?
Maybe I’m becoming cynical in my old age, but they could equally have said: –
Average rent increases have been 6% lower than inflation in 2022.
Why is it that every headline I see these days appears to be anti landlord propaganda?
Member Since June 2013 - Comments: 3243 - Articles: 81
12:54 PM, 15th December 2022, About 3 years ago
Reply to the comment left by Mark Alexander – Founder of Property118 at 15/12/2022 – 03:43
Yes, good point.
Member Since May 2018 - Comments: 2016
3:10 PM, 15th December 2022, About 3 years ago
Lies, damned lies and statistics.
On these figures rent increases in Scotland have been 113% of those in England (4.4/3.9), and 142% of those in Wales (4.4/3.1). So much for rent freezes then ;-).
PS: Rent rises are being driven up by government policy and the Bank of England. Landlords are squeezed between HMRC and the financial services industry.
Member Since March 2022 - Comments: 364
4:33 PM, 15th December 2022, About 3 years ago
With statistics a lot lies in the presentation. As Mark points out the ONS could have qualified the statement by saying that with inflation at 11% the fact that average rents outside London have risen by only 4% is an indication that landlords are trying to help their tenants out. However, to say this is against the promoted populist belief that landlords are all heartless money grabbing individuals charging exorbitant rents for mouldy hovels, evicting tenants if they complain or evicting them to get more rent.
Statistics show that most PRS landlords tend to be older and have one or two rental properties. As a result they tend to own property outright so are not directly affected by interest rates. They might have started out charging market rent but also have some empathy with tenants and don’t seek to milk them at every opportunity, so their rents fall behind. A lot of these landlords will not have raised rents at all. The 4% rise is probably due to new tenancy double digit rises being averaged out over all rental properties.
Member Since May 2018 - Comments: 2016
4:41 PM, 15th December 2022, About 3 years ago
Reply to the comment left by northern landlord at 15/12/2022 – 16:33
Which statistics show that most PRS landlords are older, own property outright and are not directly affected by interest rates? The landlords I’ve chatted with are presently putting rents up because they are affected by interest rates. I only know of one that isn’t.
Member Since March 2022 - Comments: 364
4:47 PM, 15th December 2022, About 3 years ago
Take a look at the Government English Private Landlord Survey 2021
Member Since May 2018 - Comments: 2016
4:55 PM, 15th December 2022, About 3 years ago
Reply to the comment left by northern landlord at 15/12/2022 – 16:47
So that’s here:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1078643/EPLS_Headline_Report_2021.pdf
That says that 94% of landlords had acquired their first property with a buy to let mortgage.
Where in this report does it say that older landlords aren’t affected by rising interest rates?
Member Since March 2022 - Comments: 364
4:56 PM, 15th December 2022, About 3 years ago
Take a look at the government English “Private Landlord Survey 2021” landlord profiles section
Member Since May 2018 - Comments: 2016
5:04 PM, 15th December 2022, About 3 years ago
That says (section 1.31) “…for those who had existing loans or borrowing…the median loan to value ratio was 48%..”
There’s nothing in the landlord profiles section that I can see that says that older landlords aren’t affected by debt. Maybe I missed it. What section of the report are you referring to?
Member Since March 2022 - Comments: 364
5:05 PM, 15th December 2022, About 3 years ago
Sorry repeat entry was a mistake. While maybe most landlords started out as BTL. Older landlords will have taken mortgages out years ago so they are either paid or the repayments are now so low that interest rate rises have little effect. Older landlords are not affected by debt so much as they are by rising costs for maintenance and regulation etc.