Rents in the UK are increasing at an alarming rate, putting a significant strain on tenants' finances, according to new figures.
Record-breaking rent hikes
In August, the average monthly rent for privately rented households rose by 5.5 per cent, the highest increase since data collection began in 2016, according to the Office for National Statistics.
The soaring rents can be attributed to a shortage of available properties, which is driving up costs as landlords take advantage of the lack of competition. Additionally, landlords are passing on their higher mortgage costs to tenants following interest rate hikes and increased taxes on buy-to-let properties.
The Rent vs. House Prices conundrum
Interestingly, while rents are rising, house prices are falling. This discrepancy suggests that owning a property may not necessarily be the more affordable option in the current market.
Wales experienced the fastest increase in rents, with a surge of 6.5 per cent in August, surpassing even London's 5.8 per cent jump.
On average, tenants in the UK spend a quarter of their income on rent, but in the capital, that figure rises to 30 per cent.
No relief in sight
The rental crisis is showing no signs of abating, and the UK government has delayed the implementation of its renters' reform bill, which aims to end "no-fault evictions."
The Office for National Statistics predicts that tenant bills will continue to rise over the next three months.
As rent prices continue to skyrocket, more Brits are finding private rentals unaffordable, leading to a higher demand for council accommodation that offers affordability.
In the first quarter of this year, the number of households facing homelessness due to rent hikes by their landlords increased by over a quarter compared to the previous year. Additionally, the number of tenants being evicted, even without breaking any contract terms, saw a staggering 41 per cent increase.
Evictions were temporarily banned during the pandemic, but with the cost-of-living crisis hitting hard, they have now been reintroduced.
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