Rents rise by over 11% in a year as homes shortage worsens
Wed 29 Mar 2023
A shortage of properties has caused monthly rents to soar by more than 11% in some areas over the past year, states a new report.
Areas in which we operate saw some of the highest inflation. In North Norfolk, for example, the average monthly rent has risen by 11.3% since January 2022.
This was closely followed by Nottinghamshire where rents on average have risen by 10.9% across the county - meaning the amount tenants can expect to pay is now £953 compared to £760 three years ago.
Cities in particular have seen a high increase - in York, the average monthly rent is now £1,032 compared to £858 in 2020, followed by Norwich where the average rent is now £991 compared to £817.
This rise is as a result of the lack of rental homes - there are currently just 816 available properties across the entire county of Norfolk (based on Zoopla searches) and in York, just 188 in the city and within a five mile radius.
However, the Zoopla report states in fact the rise has slowed from a high of 12.3% reached in mid 2022.
Landlords are being pushed into a place where they have to sell as the rent doesn’t cover the costs of the property anymore. To increase the rent as exorbitantly as you would need to then pushes tenants out of the affordability bracket."
Tasca Kruse, Residential Lettings Manager, Retford.
Tasca Kruse, Residential Lettings Manager, based in our Retford office, said: "For each property that becomes available, we are getting a surplus of suitable applicants.
"The main reason for the problem is because of the rise in mortgages and many landlords being pushed into a place where they have to sell as the rent doesn’t cover the costs of the property anymore.
"To increase the rent as exorbitantly as you would need to then pushes tenants out of the affordability bracket."
Lesley Levy, Residential Lettings Manager, based in Norwich, said: "The shortage is because some landlords have been selling and more tenants have been choosing to stay put. There are more people looking to rent because of the lack of affordability to buy, driven by the increase in interest rates and the general economy.
"This coupled with more overseas students and a general increase in the number of people coming into Britain to take up jobs means there are not enough properties coming up for rent to cope with the demand.
"More landlords are considering divesting their rental portfolios because of rising costs and the increase in government regulations, particularly the much awaited Renters' Reform Bill which is proposing various changes. However, this legislation is still very much on the horizon."
If you are a landlord and need advice, please contact Lesley Levy or Tiffanie Kerr in the Norwich office on 01603 629871 or Tasca Kruse in our Retford office on 01777 712945.
We have rental experts across our offices so for your area please see here
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