3 factors affecting the UK’s private rental world in 2024
Photo by Kindel Media
Private landlords in the UK currently number just under 3 million, and in 2021, the average income a landlord received from property alone was under £20,000.
Indeed, with commonly low takings from property portfolios, it’s rare to come across career landlords in the UK. However, the current landscape is set to change and in 2024 there are a lot more factors affecting the private rental world than there have been in the past 10 years.
What does this mean for landlords and renters alike, especially with the law regarding setting and increasing private rent set to change in 2025? The 3 factors below are top of the concern list all round.
Changes in the law
The Renters’ Rights Bill was recently introduced by the government and is steadily making its way through the House of Commons.
This bill proposes many changes to the current rental system in the UK, with the majority of benefits falling on private renters and allowing for better tenancy security.
Many private landlords, on the other hand, have expressed frustration with what the bill sets out to do. However, it’s currently too early to see any changes.
A rise in housing disrepair claims
The questionable state of affordable housing in the UK has been brought to the forefront in the past 10 years. Many tenants live in downgraded homes in states of disrepair, or otherwise built with poor-quality, potentially highly flammable materials.
As such, many housing disrepair cases have been brought to court in recent years. It’s common to ask how long does a housing disrepair claim take, with many legal offices determining the outcome based on the tenant’s experience and the extent of disrepair within the property.
This has led to a lack of trust in private landlords, and could even be seen as a contributing factor for why many landlords have sold their portfolios in recent months.
High rent increases
In March 2024, the Office for National Statistics found that the average rent in the UK’s private rental sector increased by 9.0%.
This is a massive rental increase in a short time period, with records from the past 10 years showing us that private renters are having to cope with high prices in a way renters from the decade before never had to.
However, even these blanket increases have different results for renters across the UK, with both Wales and Scotland boasting lower rent prices than the rest of the mainland.
For example, in London the average rent increased by 32% in the past 5 years. Those renting in London boroughs have paid anywhere between £100 and £520 more than they did pre-pandemic.
It’s also clear from market trends that demand for suitable housing is higher than ever, and the price of monthly rent seems to reflect that.
But with many being priced out of the private rental market month by month, a change in the law around rent increases is set to be welcome news for most.
