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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.
john thompson
21:14 PM, 11th December 2023, About 5 months ago
Its IMMIGRATION, Not migration.
Migration is people coming for a short while then going back home or crossing various borders. Immigration is people basically staying for good. Clearly as our population has increased by millions in ten years its not migration its IMMIGRATION.
And common sense told most of us long ago immigration is the root of not just rising rents but housing shortages hospital waiting lists, appointments with doctors and dentists, rising crime rates, fragmented communitys, low wages and just about every other major problem we have.
The government trying to shift blame onto landlords, avoiding the real causes and renaming the problem won't make it go away or fool most of us.
We need someone in charge with balls who will stop playing mind games and the brainwashing b.s, stop mass Immigration and other short term cheap labour fixes, and get our population trained up and back to work.
Robin Pearce
23:25 PM, 11th December 2023, About 5 months ago
Reply to the comment left by Beaver at 11/12/2023 - 13:31
Higher GDP due to more people means no more GDP/capita.
Just a lower quality of life due to increasing population density. More competition for homes, jobs & everything else. And more tarmac & concrete & traffic jams & less countryside
Beaver
8:52 AM, 12th December 2023, About 5 months ago
Reply to the comment left by Robin Pearce at 11/12/2023 - 23:25
I share your concern about less countryside.
PH
9:04 AM, 12th December 2023, About 5 months ago
Reply to the comment left by john thompson at 11/12/2023 - 21:14
Absolutely spot on. It's been like this for 20 years or more and most people with at least one brain cell could see what was coming... except those running the country of course.
john thompson
13:08 PM, 12th December 2023, About 5 months ago
Reply to the comment left by PH at 12/12/2023 - 09:04
There's been a lot of suggestions from those in the know it's all deliberate, no borders, no nations, and total control of all citizens at any cost.
Shinh
9:53 AM, 4th January 2024, About 5 months ago
Immigration is the lowest and cheap inflammatory reason. He is out of his depth
What about high rate of divorce in the UK.
more split families, less desire to live together as a close family.
Organic population growth which is much more than, the 750k pa net migration figure when levelled over a census period
The right to British citizens to bring their loved ones to live as a family
Reduced house building by private and government for 10 years
Suggest he sticks to house selling and not commenting with half backed views which are not productive right now.
If he wants Immigration to reduce or immigrants removed then say so not hide behind flowery language
Shinh
14:16 PM, 4th January 2024, About 5 months ago
If the UK, USA stopped supplying £in in arm to the countries where 90% of the illegal migration is comming from we wouldn't have an issue.
This is self infected cannot blame anyone from preserving themselves and their lived ones , what is legal or not changes over time
Landlords should only be allowed 60ltv finance this will free up stock for others
Beaver
13:12 PM, 5th January 2024, About 5 months ago
Reply to the comment left by Shinh at 04/01/2024 - 14:16
I'm not sure about landlords only being allowed 60% LTV finance in an environment where there is a shortage of housing stock and a shortage of available capital. Putting money in premium bonds to shore up government doesn't house anybody.
Shinh
14:50 PM, 5th January 2024, About 5 months ago
Reply to the comment left by Beaver at 05/01/2024 - 13:12
This restriction will put more stock into the market to be purchased by owner occupiers and reduce prices so more can afford to buy their homes which leads to lower rents leading to less homeless or deprivation interms of having shelter
Beaver
15:01 PM, 5th January 2024, About 5 months ago
Reply to the comment left by Shinh at 05/01/2024 - 14:50
Sorry, but I think the restriction wouldn't put more stock into the market because it would restrict the availability of capital.