The State of Renting in the UK: Challenges and Urgent Reforms
The UK is witnessing a surge in tenants, with one in five residents in England and Wales now part of the “generation rent.” In this blog post, we delve into the current challenges faced by renters and the government’s proposed solutions.
1. Renting Affordability Crisis
The affordability of renting has taken a significant hit in recent years. A Guardian analysis reveals that the average asking rent in the UK has spiked by 22% since last October and a staggering 56% since October 2019. Wages struggle to keep pace, and over 40 council areas now boast rents that exceed 30% of an average couple’s income, making them unaffordable. Notably, this issue extends beyond London, impacting cities like Cardiff, Manchester, Newcastle, Exeter, Oxford, Cambridge, and Brighton and Hove.
2. Rise in Renting Due to Unattainable Property Ownership
In 2001, only 10% of the population rented privately. Fast forward to today, and more than a fifth of us now opt for private rentals. The root cause lies in the scarcity of housing construction, making property ownership increasingly exclusive to the affluent. With buying out of reach, alternatives like living with family or renting become the only viable options.
3. UK’s Rental Expense Predicament
The UK stands out as one of the most financially burdensome places to rent globally. According to the Organisation for Economic Co-operation and Development, nearly 23% of private renters in the UK spend 40% or more of their salary on housing costs, surpassing all other European countries. For the lowest earners, the situation is grimmer, with over half of them burdened by housing costs – a figure higher than any other country with available data, excluding Colombia.
4. Insecurity in Rental Agreements
A significant challenge faced by tenants in England is the notorious Section 21 of the Housing Act 1988, allowing landlords to evict tenants without providing any reason. The government’s proposed renters reform bill aims to abolish Section 21, but delays and court reforms have postponed its implementation. Since the initial proposal in April 2019, thousands of eviction claims have passed through the courts, resulting in threats of homelessness for over 71,130 households.
5. Poor Rental Conditions
Beyond high rents and insecurity, data from the English Housing Survey highlights the subpar standards prevalent in the private rental sector. In 2021-22, nearly 23% of rentals in England failed to meet the decent home standard, in contrast to 13% of owner-occupied housing and 10% of social housing. Moreover, privately rented properties are over six times more likely to be affected by damp compared to owner-occupied houses.
As the government introduces the rental reform bill, the urgency to address these challenges becomes more apparent. Stay tuned for updates on the evolving landscape of renting in the UK.
If you would like more on our opinions of the state of the UK Rental Market or just general information on renting in the UK, please get in touch of us via info@witlet.co.uk or call us on 01376502500.
