Tenants face rent bombshell
Rent hikes are inevitable unless the government reverses tax changes for landlords, it has been claimed.
Tenants face paying an average of £23 a month more in rent, totalling £414 across a typical 18-month tenancy, according to MakeUrMove.
The online letting agent forecasts that the average monthly rent, which it says currently stands at £918 a month, is set to rise by 2.5% in 2018.
Overall, the company predicts that around 2 million tenants across the UK will be hit with rent hikes totalling a combined £46m or so a month, as many landlords are forced to pass extra costs onto tenants by pushing up rents.
The government has attempted to create what the former chancellor George Osborne described as a “level playing field” between landlords and those buying homes to live in, by increasing taxes for landlords such as increasing stamp duty costs, cutting mortgage interest relief, scrapping the ‘wear and tear’ allowance, among other measures.
The impending tenant fees ban is also contributing to create a perfect storm of financial pressures on landlords, leaving many with little alternative but to increase tenants’ rents to cover their costs.
Renters in London in particular are in for a rough ride, with around half of landlords in the capital planning to increase rents.