Tenants struggle to find new homes as rents rise

Tenants struggle to find new homes as rents rise

8:01 AM, 22nd May 2024, About a month ago 11

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Half of all tenants who moved in the past year say they faced difficulties finding a new property to rent which is an 8% increase from the previous year, research reveals.

According to The Deposit Protection Service (DPS), the research suggests a tough market for renters, particularly younger tenants and those who are unemployed.

It says that tenants are facing fewer available properties, rising living costs and higher rents as landlords tackle increased mortgage costs.

The survey also found that many tenants who haven’t moved would like to but are struggling to afford a new property or find one that meets their needs.

‘Finding a new rental property is getting tougher’

The firm’s managing director, Matt Trevett, said: “Finding a new rental property is getting tougher for a growing number of tenants, especially for younger, non-student renters and those who are not in employment, due to a combination of fewer rental properties on the market, the current cost of living, as well as increased mortgage costs for landlords.

“At the same time, the proportion of tenant respondents moving home has more than halved during the past 12 months leading to some tenants stuck in properties that they are financially struggling to afford.”

The survey also highlights that only 9% of tenants relocated in the last six months, compared to 24% in the same period last year.

Despite this, 24% of those who stayed put expressed a desire to move but were unable to do so. More worryingly, 21% of these tenants reported that their current rent was beyond their financial means.

Experiences of different age groups

The survey also shed light on the experiences of different age groups and employment statuses with 52% of 18-25-year-olds and 50% of 26-35-year-olds struggling to find a new property.

That compares with just 37% of those aged 66 and above.

Among unemployed respondents, 54% found the moving process difficult, compared to 39% of students.

Of those tenants who didn’t move, 24% said they were living in poor properties, and 16% said they were living in a home that was too small.

And 10% said they were living further away from family and friends and 2% must live with an ex-partner.


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Comments

Cider Drinker

10:26 AM, 22nd May 2024, About a month ago

Fewer landlords and fewer PRS properties, at a time when the number of potential renters is rising, will obviously make it more difficult for people to find suitable properties to rent.

Some of the former PRS properties will be bought by owner-occupiers who would otherwise have chosen the PRS. Some may have been bought by new landlords (I’d suggest not very often) and others may have been switched to FHL.

The net effect is fewer homes in the PRS at a time when mass migration, coupled with an aging population, is providing unprecedented demand for homes.

Rents are reportedly stabilising. This is to be expected as interest rates have remained fairly constant for a year and official inflation figures are falling.

Old Mrs Landlord

10:39 AM, 22nd May 2024, About a month ago

The unemployed are finding it difficult to find a home in the PRS? Well knock me down with a feather!

moneymanager

11:59 AM, 22nd May 2024, About a month ago

Landlords struggle to provide homes as costs and regulatory burdens rise, you don't say Sherlock.

Stella

12:27 PM, 22nd May 2024, About a month ago

Well there's a surprise!

Another expert who talks about the shortage as only being due to increased mortgage rates while choosing to ignore the other elephants in the room.
Increase taxes due to the introduction section 24, licensing costs, complience costs and the RRB which amongst other things means we loose the right to have our properties back even when we have to sell.
Perhaps the chickens are at last coming home to roost!

Beaver

12:50 PM, 22nd May 2024, About a month ago

Reply to the comment left by Old Mrs Landlord at 22/05/2024 - 10:39
PCM rent for a three bed semi-detached from the council in our area, just over £800 PCM.

Cost of renting a three bed-semi detached house from the PRS in our area £2.5-3K PCM.

Discount available from the Council for council house tenants to buy their houses and rent out (apparently) 35%.

But I think your average former council house tenant with a mortgage would probably want to rent their house out to somebody who has a job.

Cider Drinker

15:41 PM, 22nd May 2024, About a month ago

In short, there are not enough properties for the number of people needing one. Not enough in the PRS (and for good, government-led reasons), not enough Social Housing and not enough affordable homes for people to buy.
Too many people, too few houses.
From what I see, houses are being built rather quickly (and often poorly).

Martin Roberts

17:00 PM, 22nd May 2024, About a month ago

Government policy is to force landlords out of the business, it’s working, so it’s the landlords to blame.

Plus the 'I' word. Massive imigration.

Dickie Withers

20:06 PM, 22nd May 2024, About a month ago

The headline should read tenants struggle to find new homes as successive Governments fail to build more homes for the people already in need and failed to plan for new homes in the future.
But no let's blame LL who provide a service that the Councils are unable to provide.

Beaver

10:01 AM, 23rd May 2024, About a month ago

Reply to the comment left by Dickie Withers at 22/05/2024 - 20:06
It should also read successive governments fail to put measures in place that favour long-term tenancies that work for both landlord and tenant, i.e. there is reciprocity in the arrangement: Tenants have to pay the rent on time and in full, look after the property and get on with the neighbours; landlords need to provide a decent and safe home and charge fair market rents. Most landlords do this.

And it should read successive governments have penalised small-portfolio landlords, restricted tenants' choices of where they rent and driven up rents in the process.

Michael Booth

11:17 AM, 23rd May 2024, About a month ago

Not landlords problem , simple answer is for the government of what ever color is to build more social housing simple.

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