Rental Market Crisis

A recent study conducted by Cornerstone Tax, the UK's leading property tax advisors, sheds light on the current challenges facing both landlords and tenants in the rental market, reports Abode2.

The data has revealed a growing sense of instability and uncertainty among Brits as a staggering 42% of renters fear that they will be stuck renting for the rest of their life. The rental market crisis has intensified as mortgage rates and deposit requirements have consistently surged in recent years, making homeownership an increasingly distant dream for many.

The rise in the number of renters has triggered fierce competition in the housing market. Notably, 17% of Brits report losing out on their desired rental properties due to bidding wars within the last two years. The situation is also dire for those who are lucky enough to secure a property, with a staggering 19% of Brits saying they have had to change rental properties more than five times in five years because of landlords and not through any fault of their own.

The escalating cost of renting has been a significant driver of change in the rental market. The average rent for newly let properties now stands at £1,304, a figure exacerbated by soaring interest rates and landlords passing on their escalating expenses to tenants. As a result, 15% of buy-to-let landlords have decided to exit the sector, as revealed by Cornerstone's research. They cite the mounting costs as a primary reason for selling their rental properties.

Furthermore, the survey uncovers that 18% of potential buy-to-let landlords have been discouraged from entering the market due to increased regulations and rules. This growing reluctance of buy-to-let landlords to enter the market will only serve to exacerbate the supply and demand issues which are currently causing upward pressure on prices and bidding wars due to the lack of stock.

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