The rental market has been turbulent for the last few years, and rent increase is predicted to continue in 2022. The private rental market is rising at a staggering rate, the fastest in five years! This is only compounded by the increased cost of living which is putting a huge burden on UK households. So why has the rental market increased at such a difficult time?
Which areas have seen the biggest increase?
Private rental prices in Scotland grew by 2.6% in 2021/22 which was the highest annual growth rate since records began in 2012. And it doesn’t get much better for the rest of the UK! The East Midlands increased by 3.6% on the previous year, and surprisingly London had the smallest increase of only 0.1%. This is because the demand for living in the city is still low since the pandemic. However, although rental prices in London haven’t seen a big increase, demand has outweighed supply. Surprisingly, 71% fewer homes were available on London’s rental market in December 2021 compared with a year earlier.
Rent increase notice
When it comes to increasing tenant’s rent, landlords must follow the correct guidelines and give tenants sufficient notice of any changes. For a monthly, weekly, or fortnightly tenancy one month’s notice of the intended increase is required. For a yearly tenancy, a period of six months’ notice is required before the increase can be put into effect. The section 13 notice is if you have an assured shorthold tenancy or assured tenancy. You shouldn’t get a section 13 notice if you have any other type of tenancy.
Recent reports show that over half a million renters are behind on their rent and fear being made homeless. This devastating statistic comes as we face the biggest hit to our economy in decades. One of the biggest reasons is the alarming rate of rent increase. More than 200,000 private renters in Britain are in the process of being evicted or facing eviction. This is down to the fact that the average monthly rent is now £1,200, according to new figures.
If you’re struggling to pay rent and need support contact the citizens advice.