Over half of Wales’ landlords hiking up rates during cost of living crisis
Over half of Wales’ landlords are hiking up their rates during the cost of living crisis, new figures have revealed.
62% of landlords in Wales have decided to put up their monthly rent payments, adding an extra burden on tenants amid rising food and fuel prices.
Wales’ percentage of landlords putting up rents was higher than the UK average of 58% – which was itself the highest number ever recorded by estate agency Hamptons.
Wales has been hit by rising house prices in general as a pandemic race for space led to many leaving cities and seeking homes to rent and buy elsewhere.
Of the UK’s nations and regions, only the South West of England (68%) and Yorkshire and Humber (63%) saw more landlords put up rents than Wales.
It cost an average of £742 to rent in Wales now compared to £701 this time last year, a rise of 5.7%.
According to Hamptons figures, renting a property was actually £9 more expensive than buying one in Wales in May.
However, they said that this was likely to change in the future because of interest rate rises increasing the monthly cost of mortgages.
“Over the next year or so we expect several further small interest rate rises, with mortgage rates set to peak around the middle of 2023 which will add to the cost of buying in cash terms,” they said.
“We also expect rental growth to slow later in the year as rising living costs squeeze affordability.
“By this point it will mean that for new buyers with smaller deposits, the monthly cost of purchasing a home will be significantly higher than renting one.”
Support our Nation today
For the price of a cup of coffee a month you can help us create an independent, not-for-profit, national news service for the people of Wales, by the people of Wales.