A study carried by Right Move has found that over the past year the cost of renting a house has risen by a slim 1.8%, compared with 3.9% for the previous year. Rent in the capital, which is by far the most expensive has taken a 4.2% year on year fall.
This has been accounted to a 12% increase in the number of properties available in the UK rental market.
This 12% increase has come as a result of investors rushing to purchase buy-to-let properties to avoid the stamp duty increase on second properties. This wider variety of choice for tenants is pushing prices down. Rightmove’s head of lettings, Sam Mitchell, commented:
“The supply boost following last year’s buy-to-let frenzy in the first few months of the year has continued through to 2015, introducing more competition in the market”.
Despite the higher rate of rent fall in London, rent has still risen by 30% over the past decade, with the cost of a two-bedroom house in the capital costing around £1,900 pcm, wages on the other hand have only risen by 18% in the same period of time, leading to rent taking up a disproportionate amount of Londoners income. According to studies by Clydesdale and Yorkshire Banks, this has meant that around a third of adult Londoners under the ages of 40 cannot afford to save anything on a monthly basis.
Mitchell warns that whilst rents have been falling in London, this is not a trend that’s here to stay, so if tenants feel they are paying too much rent now is the time to negotiate. He predicts that incoming tax changes are likely to spur many landlords into selling up, reducing the supply of lettings in London’s rental market.
Anthony Okumah of the Housing Department at Duncan Lewis Solicitors had this to say on the matter:
“Despite rent prices being a third higher in London than they stood a decade ago, we could be in for a surprisingly rare year of rent climbing faster in the North of the UK than in the South. Nevertheless, as we continue to remain hopeful for affordability of homes nationwide, we can expect any increase in earnings to be shadowed by an increase in rent.”
Anthony Okumah is a Director and Head of the Duncan Lewis Housing Litigation Department. He also specialises in dispute resolution (litigation, arbitration or mediation), professional negligence claims predominantly against solicitors, debt recovery; insolvency; contractual disputes, leasehold disputes and contentious probate cases. Anthony also has an in-depth experience of boundary and neighbourhood dispute cases and additionally he regularly conducts his own advocacy in both the County Court and the High Court which allows him to represent his clients throughout their retainer.
Duncan Lewis Housing Department
Duncan Lewis Housing Solicitors can guide clients in any matter or issues arising with local housing authorities, housing applications, tenants, landlords, ownership and repairs. The Duncan Lewis housing team specialises in representation in all social housing proceedings including reviews, appeals and judicial review relating to homelessness, disrepair, succession for tenants and neighbourhood disputes against local authorities .If you have any housing related queries or require representation please do not hesitate to contact our team of expert solicitors on 0333 772 0409.