With Brexit rocking the nation, and the political landscape being thrown into disarray, it is no surprise that the housing market is at the forefront of many people’s concerns – with the nation’s tenants amongst the most nervous.
With property stock at a record low, with demand outstripping demand many experts have predicted that may landlords will take the opportunity to hike their rents, and tenants will have no option but to pay the price.
Figures released by the Office of National Statistics has revealed that rents in the UK overall increased by 2.5% in May. On average, the rental price increased from £512.50, from £500 per month in the same period in 2015. Other than London (which rose by 3.3% annually), the area which rose the most was the South East, with values increasing by 3.4%.
These increases have come following the cost hikes that landlords are facing, with the recent surcharge in stamp duty for second homes, and cap on tax relief for buy-to-let mortgages – all hitting landlords hard in the pocket.
With such concerns at the forefront of the nation’s landlords mind, recent research from lender Kent Reliance has revealed that around a third of buy-to-let landlords intend to pass on the increase in their costs with a boost to their rental rate. However, there are concerns that this proposed increase may put additional pressure on people who are already finding it difficult to meet the rent and bills, and could lead to more repossessions of rented homes.
Documents released by the Ministry of Justice in May revealed that there were 10,723 repossessions of rented properties by bailiffs in the first quarter of 2016, up from 10,253 in the final quarter of 2015. The number reached a record high in 2015, with 42,728 households ejected from their properties across England and Wales.
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