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16:56 PM, 7th December 2023, About 5 months ago
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The UK is facing a rent crisis as record net migration has increased the demand for rental accommodation, according to the boss of Zoopla, one of the UK’s leading property websites.
Richard Donnell, the executive director of Zoopla, told the Telegraph that renting was the ‘first port of call’ for most people who moved to the UK, putting pressure on the supply of rental properties and driving up rents.
He said that many landlords were leaving the sector due to tax changes and regulatory reforms, creating a shortage of rental homes.
According to the latest figures from the Office for National Statistics (ONS), net migration to the UK reached a record 745,000 in 2022, meaning that more people arrived than left the country.
In the two years to June 2023, nearly 1.3 million people immigrated to the UK, mostly from outside the EU.
Mr Donnell told the Telegraph: “We have a triple whammy on the demand side, one element of which is migration.”
He also points to the number of international students heading into the UK – but there isn’t enough purpose-built student accommodation (PBSA) to cope.
The ONS says that 263,000 international students came to the UK in the year to June, mainly from India and China.
He says: “And so you get an overspill of that student demand into the private rented sector.”
Mr Donnell said that one in 10 homes that are advertised on Zoopla are being sold by a private landlord.
He added: “The total number of private rented homes in this country is stuck at 5.5m and it has been for the last seven years.”
Mr Donnell also told the newspaper that some migrants would buy their home eventually, but many remain in the rental sector for longer than usual due to high interest rates and house prices.
He also said that a strong jobs market was fuelling demand for rental accommodation, as more people moved for work.
David Miles, an economist at the Office for Budget Responsibility, backed up Mr Donnell’s suggestion that migration was playing a part in rapidly climbing rates.
He told the Telegraph: “It may be that recent high rates of increase in rents is linked to population increase and to fast growth in student numbers.
“It would be strange if that was not a factor.”
The ONS data showed that rents across the UK increased by a record 8.4% in the year to October 2023, the highest annual growth rate since the series began in 2015.
The average rent in the UK was £1,029 per month in October, up from £949 a year earlier.
Rising rents have contributed to a rise in homelessness and affordability problems for many renters, especially in London and the South East, where rents are the highest.
Charities have warned that the rent crisis is pushing more people into poverty and debt and called for more investment in social and affordable housing.
Easy rider
9:56 AM, 7th December 2023, About 5 months ago
At last, somebody recognises the simple arithmetic and is brave enough to say it.
John MacAlevey
10:07 AM, 7th December 2023, About 5 months ago
A recent rarity..a simple two bed back-to-back became available as the long standing tenant needed to move quickly, 15 years as an excellent tenant, I let he go with virtually no notice to help secure her new home.
110 enquiries within four days of online marketing proceeding to 22 viewings via block timings..only two viewers were indigenous..just saying.
Beaver
10:12 AM, 7th December 2023, About 5 months ago
Reply to the comment left by John MacAlevey at 07/12/2023 - 10:07
No wonder that tenants are now putting bids in to make sure that they secure a property.
Easy rider
11:28 AM, 7th December 2023, About 5 months ago
Reply to the comment left by John MacAlevey at 07/12/2023 - 10:07
Did you find filtering applicants quite easy?
PH
12:33 PM, 7th December 2023, About 5 months ago
I have a 2 bed bungalow coming onto the rental market in 2 weeks near Wolverhampton, I hope there's not 110 interested !
John MacAlevey
12:41 PM, 7th December 2023, About 5 months ago
Reply to the comment left by Easy rider at 07/12/2023 - 11:28
Relatively easy..are you nice & can you afford it..? no,seriously..have you got a quality gaurantor besides a full time permanant job?
John MacAlevey
12:42 PM, 7th December 2023, About 5 months ago
Reply to the comment left by PH at 07/12/2023 - 12:33
It depends where/how you market it.
Beaver
13:48 PM, 7th December 2023, About 5 months ago
Reply to the comment left by PH at 07/12/2023 - 12:33
I think you need a good agent that can manage the process of you renting it to the highest bidder...that increase in rent will probably cover the cost of the agent and you won't actually have to deal with the tenants.
PH
13:56 PM, 7th December 2023, About 5 months ago
Reply to the comment left by John MacAlevey at 07/12/2023 - 12:42
High street agent & on the net however I do get involved with the whittling down but it's not something I look forward to. Everyone is really nice when they want something.....hmmm.
PH
13:59 PM, 7th December 2023, About 5 months ago
Reply to the comment left by Beaver at 07/12/2023 - 13:48
As above, I use an agent but I certainly have a say in the final decision. My last tenant was great and loved it but sadly passed away recently. I just hope the next one is just as good. Fingers crossed 🤞