Young professionals’ home searches are becoming a nightmare due to a “cost of renting problem.”
The Observer writes that landlords and agencies are increasing rents to record levels in response to the huge demand for homes and the resulting shortage of available accommodation at a time when millions are struggling financially as a result of rising energy costs.
According to statistics from Rightmove, rents in Britain have already reached all-time highs, rising by more than 20% annually in certain regions, such as Manchester, and by 15.8% in London.
Some tenants claim their landlords are essentially evicting them because of rent rises of up to £700 per month, while others who have left apartments claim their old residences were relisted for double the original price.
It occurs at a time when Ofgem’s most recent price cap increase is expected to have an impact on 24 million homes and drive up the cost of using appliances.
On October 1, the energy price limit will increase by 80%, raising the typical household’s annual energy expense from £1,971 to £3,549.
In a study, the estate agents membership group PropertyMark discovered that although letting agents on average received 127 new applications per branch in July, there were only 11 homes available for rent.
Fewer renters are moving from one rental home to another, according to Move IQ, a group that provides advise to consumers on real estate. Part of the shortfall is caused by several landlords selling their houses to profit from high prices on the sales market.
According to Phil Spencer, who co-presents Channel 4’s real estate programme Location, Location, Location, “almost three quarters of Propertymark’s letting agents claim they have noticed an increase in tenants renewing their leases over the previous 12 months.”
Contrarily, renters are likely to experience the full impact of rent hikes if they relocate to a totally new house. In the previous month, more than eight out of ten agents reported rent increases. That is a new high, with some of those increases exceeding 10%.
Tenants are among those on the front lines of our challenging economic times, Mr. Spencer continues, as the cost-of-living problem intensifies quickly.
Over a three-month period, civil servant Beth Holloway, 23, submitted hundreds of inquiries to agencies, visited more than 20 viewings, and made 10 bids on houses.
However, Ms. Holloway, who has a steady job, doesn’t smoke, and has no pets, and her companion, with whom she was looking for an apartment, were consistently outbid.
We offered £200 more than [the quoted amount] but were rejected because someone else offered to pay for six months in advance, the woman said. People have reportedly offered to pay an additional £500 to £600 or to pay a whole year in advance in cash.
When she arrived for a pre-arranged showing, she sometimes found 15 people in line ahead of her. Conversely, when she called to set up a viewing, she was informed that the house had already sold, despite having been listed online just minutes before.
Research manager Max Wilson, 27, said that after “years of mice and insects,” he made the decision to leave his three-year residence.
He attempted to utilise SpareRoom, the most well-liked apartment and home sharing website in Britain, and found it to be a “crazy place of auditioning your personality” with “hundreds” of individuals competing for the same space.
He finally found a “quite good but very costly” apartment in Oval, south London, after a two-month search.
He said, “I think that was the most difficult moment of my life.”