MARKET
Will help for renters help get them on to the property ladder?
Legislation is being brought in to help those in rented property, but with rents rising fast along with the cost of living – is there much hope for first time buyers trying to get on the property ladder? Ginetta Vedrickas looks at the situation COST OF LIVING RISES Despite signs of recovery last year, 2022 has seen Brits’ wealth face a sharp decline as the cost-of-living crisis takes its toll, according to the latest data from the LifeSearch Health, Wealth & Happiness 2022 Index. Compiled by modelling a range of data sources covering health, wealth, and happiness and monitoring changes over time, the survey shows that 2021’s combined annual index score was 84.4, a slight rise on 2020’s score of 81.5, but still 15% lower than 2019’s pre-pandemic score of 99.4 and showing that happiness is decreasing. In the younger age group surveyed, of 18 to 34-year-olds, the study found that the economic crisis was a prime concern, with 25% saying that the rising cost of living has affected their mental health as well as dented their finances. Of those who had managed to get on to the property ladder, one in 25 (4%) has taken a mortgage holiday and one in 25 (4%) has defaulted on their mortgage. In total, 29% feel worse off than they did a year ago and 68% expect to be
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worse off by the end of the year thanks to inflation. For 8%, they have already put off big expenditure such as buying a house with common fears cited as rising bills, lack of savings and higher taxes.
MORE RIGHTS FOR RENTERS There has been some good news for those worrying about spiralling rents. During the recent State Opening of Parliament, the Queen’s Speech introduced the Renters’ Reform Bill, which outlined several proposals to help those in the rented sector. Delivering the speech, Prince Charles spoke of proposed legislation which is intended to strengthen the rights of tenants and ensure better quality, safer homes. Rental campaigners welcomed the proposed abolition of Section 21 “no fault” evictions and the legislation which aims to provide a “fair and effective market” for both tenants and landlords with the proposal of a national landlord register, a new ombudsman, property portal and a requirement to meet the Government’s Decent Homes Standard.
RISING RENTS Rents in the capital are notoriously high, but recent research from property portal Rightmove showed that national asking rents outside of London have also hit a new record, rising to £1,088 per calendar month. Average asking rents have risen from £982 per month over the last year, to take annual growth in asking rents outside London above 10% for the first time. London rents have also reached a new high, rising by 14.3% in a year from £1,919 up to a new record of £2,193 per month, which Rightmove says is the “largest annual jump of any region” that the portal has ever recorded. Demand is growing for areas which have lower rents, while still being in commuting distance of the major cities for work or leisure. Manchester and Liverpool are two of this quarter’s top five rental price hotspots, with asking rents increasing by 19.3% and 17.1% respectively compared to this time last year. Rightmove puts the increase down to the imbalance between high tenant demand and the low numbers of properties available
First Time Buyer August/September 2022
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