Copy article

Rents and cost of living crisis

ended 17. March 2022

A journalist at the Daily Mirror is looking for quick comment on whether rents are set to go up during the cost of living crisis and what else renters need to be aware of. Deadline is tight so just a few lines will do. 

10 responses from the Newspage community

Copy all

Star Quote
Copy

Graham Cox
Director at Bridging Hub
"Where bills are included in the rent, it's likely landlords will hike rates to cover the huge increase in energy bills. Otherwise I don't think we'll see massive rent increases, for fear of losing tenants. Many landlords are on long-term dirt cheap fixed rate mortgage deals anyway, so higher interest rates shouldn't have a huge effect in the short term."
Star Quote
Copy

Rhys Schofield
Brand Director at Peak Mortgages and Protection
"If we think purchase prices are scary, look at what's happening in the rental sector. According to the property portals, demand in February was up 99% on the previous year whilst supply was down by 50%. Guess what? Rent's are exploding as a result."
Copy

Editor
Wesley Davidson
Director at Fox Davidson
"The rental market is already at breaking point. Unfortunately, we are speaking to landlords who are already increasing their rents due to higher mortgage rates and the general higher cost of living. Landlords need to balance their books and tenants will sadly bear the brunt."
Copy

Editor
Rob Peters
Principal at Simple Fast Mortgage
Rents have been increasing faster than the price of oil amidst a global crisis, and there is no sign of a relieve. Lack of housing stock and increasing prices has pushed the up demand for rental properties with many tenants paying more in rent than an equivalent mortgage. Equally landlords will generally increase rents regularly to offset additional costs such as increasing energy bills, council tax, and interest rates.
Copy

Editor
Imran Hussain
Director at Harmony Financial Services
Rental demand is currently out of control. With the supply down by over 50%, with many landlords decide to dispose of property due to the tax changes and costs of living rising and huge rental demand, rents will increase along with other living costs.
Copy

Dominik Lipnicki
Director at Your Mortgage Decisions Ltd
"We have already seen rents increasing faster than wages and this is set to continue in the coming year. This is coupled with the cost of living crisis, eyewatering household bills and the upcoming National Insurance rise. Renters will also be affected by the energy cap being increased yet again in October, whilst inflation may well hit double figures."
Copy

Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services
"With everything else increasing I think it is feasible to think landlords will increase their rents. Mortgage rates are increasing along with their expenses and they will look to pass these increases onto their tenants. It's another obstacle for generation rent when it comes to saving to buy their own home."
Copy

Alastair Hoyne
CEO, Finanze Capital at Finanze Capital
Landlords are running a business. If interest rates increase and they have BTL mortgages and are out of their fixed period or on a variable rate then their costs will increase. I have no doubt many will pass this cost onto their tenants.
Copy

Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
Most of my landlord clients tend to be smaller; so maybe just one or two properties. They are by no means making a living in their buy-to-lets; it’s all about long term growth. For them the key is make sure they have a high quality tenant, looking after the property and paying the rent on time. For many they won’t want to rock the boat and risk losing a really good tenant by raising rent unless they absolutely have to - and that will be linked more to what they are paying on the mortgage, so interest rates are the main driver of any rental increases for these landlords.
Copy

Robert leatherland
Director at Bespoke Wealth
"In the current climate, with inflation going through the roof, renters need to be on red alert to manage their expenditure. We regularly speak to tenants and many have raised the point that the cost of living squeeze is dramatically reducing their ability to save for a deposit to be able to own their own home. Careful financial steps need to be taken to ensure non-critical spending is managed for anyone seeking to get out of the rental market and onto the property ladder."