Properties for rent are in particularly high demand as we come to the end of 2019, with the shortfall in available housing triggering a continual increase in rental asking prices.
The Royal Institute for Charted Surveyors suspect that the growth in asking rents will continue into next year, with the south of England seeing a staggering 3.5% rise and steady national average increase of 1.3% backing up their claim.
With the rental market in such good health, Wales’ National Assembly has taken steps to support tenants in the process of securing a rental property by writing an information checklist that landlords and agents must abide by. The checklist, set to hit the market in mid-December is a list of information that must be supplied to the prospective tenant prior to them paying the holding deposit.
This isn’t the first law change in support of tenants this year; in the summer, English legislators introduced the Tenancy Fee Act 2019, which prevents landlords charging additional fees other than those outlined. Despite the increase in rent prices, tenants have seen the Government introduce lots of support for their rental rights this year that is set to continue through 2020.
Build to Rent
Created to incentivize landlords to purchase lettings properties and to satisfy demand from renters, the Build to Rent scheme is expected to take off over the next few years. There’s plenty to consider for both, with property investors placing heavy consideration on location and transport links, being conscious of convenience as a key factor when choosing a home to rent.
It’s a massive assistance to renters who have different priorities to buyers and like the flexibility that renting provides. For example, a massive 85% of tenants are happy renting with no immediate urge to get onto the property ladder, with other life milestones being prioritised before purchasing property. 560,000 households are expected to be in the private rental sector by 2023 increasing the proportion of rental property by 2%.
Keep your eyes open
Concerningly, a further indication of the demand for rental housing can be shown in the rise of subletting scams seen in the market this year. Increased media coverage has exposed the frequency of homes that are secretly subletting and overcrowded; as well as causing issues for the landlord, it presents grave safety risk breaching several health and safety regulations. Regular property visits and inventory checks can help prevent this issue. Further support for landlords is to be considered in the future to refresh the justice process in the current system.