The average cost of a rental property in England is now £1,071 – 8.7% higher than at the same time last year. As inflation persists and the supply of rental homes remains limited, more and more tenants are feeling the effects of rising prices.
The next highest concern cited by renters was the difficulty of finding a home to rent, which 51% of tenants said they were worried about.
There are fears across the industry that an increasing number of landlords will leave the buy-to-let market this year in response to rising mortgage costs and increasingly complex regulatory requirements. This will increase the pressure on housing stock and mean the current highly competitive nature of the UK rental market is likely to intensify.
42% of tenants said that the condition of their rental homes is also an area of worry. And 24% expressed concern about their legal rights and protection against eviction in the coming year. Both are key factors many tenants are hoping are addressed in the Renters’ Reform Bill, due to be published later this year.
In an era of economic uncertainty and fluctuating interest rates, tenants are facing a new set of challenges when attempting to leave the rental market behind. According to the survey, 28% of respondents noted concerns over the difficulty of getting onto the housing ladder.
Tom Mundy, COO of Goodlord said, “Against the backdrop of the cost of living crisis, it’s clear tenants across the UK have significant concerns about how they will cope with potential rent increases in 2023, with the lack of rental stock – a concern also shared by letting agents – following not far behind. As the industry prepares for another busy year, with demand in the rental market showing little sign of diminishing, it’s clear that incentives to boost stock are acutely needed.”