04 May 2022
One in every seven tenants are “overpaying” to obtain a rental property, typically because there’s nothing else available, according to a new report. Average UK rents have increased for the sixth quarter as shortages of available properties continue to push up costs, according to the Deposit Protection Service (DPS), a government-backed scheme. It found that the typical rent paid in the first three months of this year was 6.1% higher than 12 months earlier and stood at £849 a month – up from £800. Matt Trevett, the managing director at the DPS, said: “Consistent quarterly rent rises – coupled with survey results that suggest that a proportion of tenants are overpaying to secure a property – underline the current intense demand for, and tight supply of, rental homes in the UK.” Earlier this month, Rightmove reported that private rents were going up at a historic pace, and prospective tenants outnumbered rental properties by more than three to one. The website named a number of rental hotspots, with Swansea in south Wales topping the table with a 19.7% annual rise in typical asking rents. Manchester was close behind, with a 19.3% increase, the average monthly rent up from £894 to £1,067 in a year. Liverpool was another hotspot, with a 17.1% annual rise. Others included Margate in Kent (18.8%), Grantham in Lincolnshire (14.6%) and Cardiff (14.5%). The Office for National Statistics published data that reveals that average UK property prices increased by 10.9% over the 12 months to February - up from 10.2% in the year to January. An estimated 11 million people rent private properties in England and the sector has doubled in size during the past two decades. Earlier this week, UK Prime Minister Boris Johnson confirmed he is considering bringing in a rental scheme to help young people struggling to get on the property ladder in England. According to The Telegraph he is in talks to reintroduce a scheme once proposed by former PM David Cameron that would give renters the right to buy homes they rent from housing associations.