The average UK rental price has hit another all-time high of £1,261 PCM, following a further 1.4% rise from last month, according to the latest figures released by HomeLet.
This news is likely to be welcomed by South London homeowners, as it means that they can charge more rent for their properties. However, it is important to note that rising rental prices are also having a negative impact on tenants, who are struggling to afford the cost of living.
There are a number of factors contributing to the rise in rental prices. One factor is the lack of supply of rental properties. This is due to a number of reasons, including the fact that more people are choosing to rent rather than buy, and the fact that some landlords are selling their properties due to the high cost of living.
Another factor contributing to rising rental prices is the fact that wages are not keeping up with the cost of living. This means that tenants are having to spend a larger proportion of their income on rent, leaving them with less money to spend on other essentials.
The rise in rental prices is having a number of negative consequences for tenants. Some tenants are being forced to move to less desirable areas, while others are struggling to afford rent and are at risk of eviction.
The rise in rental prices is also having a negative impact on the economy as a whole. This is because it is making it more difficult for people to save for a deposit on a house, which is hindering the first-time buyer market.
What can be done to address the rising cost of rent?
There are a number of things that can be done to address the rising cost of rent. One option is to increase the supply of rental properties. This could be done by building more affordable housing, or by encouraging landlords to keep their properties in the rental market.
Another option is to introduce rent controls. This would limit the amount that landlords can charge for rent. However, this is a controversial policy, as some people believe that it would disincentivize landlords from investing in rental properties.
Finally, the government could increase wages to help tenants afford the cost of rent. However, this would be a costly policy to implement, and it would also put upward pressure on inflation.
What does this mean for South London homeowners?
If you are a homeowner in South London, you are likely to benefit from the rising cost of rent. This is because you will be able to charge more rent for your property.
However, it is important to be aware of the negative impact that rising rental prices are having on tenants. If you are considering becoming a landlord, it is important to be responsible and to ensure that you are providing your tenants with good quality accommodation at a fair price.
Stay tuned for more insights into the South London property market, particularly as they relate to younger residents aiming to make a mark in this competitive arena. Also, drop me a line and pick my brains or use my free online valuation tool to get a ballpark figure!