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.”
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It’s almost like Capitalism is a big scam, in which no matter what happens the rich will always end up with more and the poor will end up with less and the rest will die in a ditch…
Good on the 38% that aren’t putting up rents,
What a dastardly thing to do!
You think? So… interest rates have gone up, insurance has gone up considerably (I’ve just had my renewal through), building materials have skyrocketed, tradespeople have put up their rates (they also are impacted by the cost of living increases) and Government continues to pile costly regulations on landlords. Take for example the proposal to increase minimum EPCs to a Grade C. Who do you think ultimately has to pay for all of this? Duh.
So basically if you don’t have a house of your own already, or some wealthy relative preparing to give you one on the cheap, things are going to become increasingly difficult? Fantastic.
I remember Herring Wehn (German comedian) asking why Brits are so obsessed with owning their homes when Germans are happy to rent. Some landlords, including minority here, clearly can make it work for both parties while others just take, take, take.
Many rent increases are just to cover increased taxes local licensing fees.
In many instances the Government is making more in taxes than the Landlord makes in profit.
I don’t know what else anyone expected, nor why it should be the landlord’s ‘fault’. The government hiking their tax rates from 20/40/45 to mathematically unlimited – landlords now can pay tax on a loss – means it is impossible to keep supplying rental property. Society told landlords they wanted them gone and govt obliged. A short supply drives up prices. Add in the crippling Section 24 and rents can only get worse. Not hard to understand.
When Petrol, Utilities and everything else goes up, – its the cost of living, but when rents rise – its landlords ‘ Hiking up rents ‘