The cost of rent is going up. In fact, new findings from property website Zoopla reveal that rents across the UK are rising faster than at any time since 2008. So, what’s causing this rapid rise? And how can tenants cope? Let’s find out.
What’s happening to rent prices?
New figures from Zoopla show that private sector rents in September were 4.6% higher than they were at the same time last year. This is the strongest growth in 13 years. The average rent now stands at £968 per month. And excluding London, rents were up by 6%, which Zoopla says is a 14-year high.
The regions where rents have risen the most are the South West (9%), Wales (7.7%), and the East Midlands (6.9%).
Purbeck in Dorset registered the highest rate of annual rental growth at 16.2%. Meanwhile, in London, prices are starting to go up again as people head back to their offices. Rents in the capital increased by 1.6% year on year according to Zoopla. This follows a near 10% drop at the start of the year.
Why are rent prices going up so quickly?
According to Zoopla, the rapid rise in rents is due to demand outstripping supply, especially in city centres, putting upward pressure on prices. As lockdown restrictions have been lifted and businesses have reopened, more people are returning to city centres, driving up demand.
Grainne Gilmore, head of research at Zoopla, says: “Households looking for the flexibility of rental accommodation, especially students and city workers, are back in the market after consecutive lockdowns affected demand levels in major cities.”
The rise in rent prices is also partly due to the popularity of properties in higher price bands, which reflects the ongoing race for space in the aftermath of the pandemic.
What can we expect going forward?
According to Zoopla, the growth in rent prices is expected to continue into next year. However, this growth is expected to ease to 4.5% by the end of 2022.
How can you cope with rising rent prices?
Has your rent recently gone up? Or are you expecting to see a significant increase once your current lease expires? Here are three moves you can make to cope.
1. Try to negotiate with your landlord
It doesn’t hurt to negotiate with your landlord if they are trying to increase your rent.
First, do some research to see how your rent compares to that of tenants in other similar properties in your area. After you’ve done your research, you can speak with your landlord or even write to them if you don’t fancy a face-to-face meeting.
Some landlords would rather take a lower rent than they were hoping for than have to deal with another vacancy. They might be willing to compromise if you have a good track record of paying your rent on time.
2. Make some cuts to your budget
If your landlord won’t budge even after negotiating, you might be able to accommodate any increase in your rent by cutting back on some of your expenses. For example, instead of dining out on a regular basis, you could decide to cook more at home. Or you could cancel your expensive gym membership in favour of home workouts.
You may also be able to cut down on some of your other outgoings, including electricity, gas and car insurance, by shopping around and comparing deals.
3. Consider getting a housemate
Living with a housemate can significantly reduce your monthly cost of living, including rent. It could be a friend who also lives in the same area, a classmate or even a family member.
Of course, consult your landlord first to ensure that having another person living in the property will not be a problem.
Don’t forget to thoroughly vet whomever you intend to live with to ensure that the two of you are compatible. Have an honest conversation about how you’ll split expenses and how you’ll divide up basic chores like cleaning.
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About the author
Sean is a personal finance writer with a strong passion for helping others become more financially literate and make better financial decisions. He covers everything from credit cards to savings to investing.
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