Predicted cost of rental rises compared to first time buyers is eye-opening
An exclusive story in the i has said that rental rises are to cost £3,700-a-year more than first-time buyers pay on their mortgage by 2026.
Rents will also rise more than four times more than house prices between 2023 and 2026, they report.
These troubling forecasts were made by estate agents Hamptons.
The current difference between rent and mortgage costs is £313 per month or £3,756 per year.
Over the four years from the end of 2022, Hamptons is forecasting that rents will increase 27 per cent.
Looking back to 2021, average rental costs were £1,130 per month, and the average mortgage was £840 per month.
Despair at renters’ homes’ poor condition
This worrying news for renters follows on from a BBC report highlighting problems some renters are having.
Although the vast majority of landlords provide a great service, there are some troubling stories.
The BBC case study says: “I’ve got woodworm… I’ve got damp and mould all over my windows, I’ve got one window that doesn’t open, I’ve got two windows that are cracked.”
What to do if a landlord won’t make repairs
- Keep records and evidence
- Write to your landlord
- Complain to the letting agent
- Contact the council’s private renting team
- It’s possible to take legal action as a last resort – but get advice first.
Source: Shelter Cymru
Stay in rented?
In response to the predicted rental increases, Mortgage Medics MD Sam Murphy said: “With recent interest rate increases, aspiring first time buyers would be forgiven for thinking they might be better off staying in rented, but the same rate increases are causing many landlords to put rents up, making it even harder to save for a deposit. We’ll always advise people based on their individual circumstances, but if you have the ability to get on the property ladder, it’s always worth considering. Not just because it’s likely to cost you less in the long run, but also owning your own home gives you security and the freedom to decorate & DIY to your heart’s content!”