According to a research by Countrywide, rents last year received a £1.8 billion increase from 2016 levels and totaled to £51.6 billion in payment, which is also more than double the value from a decade ago.
In a report from The Independent, prices of rent have been climbing in the U.K. for the past few years amid the faltering balance between supply and demand for real estate. And skyrocketing prices of house properties make it impossible for the average millennial today to afford a house, worsening the crisis.
According to the Institute for Fiscal Studies, about 27 percent of adults from ages 25 to 34 and raking in middle-class income owned a home in 2016, per a separate report of The Independent. Compared to the same group in the mid-90s, this conveys a collapse from the 65 percent who owned houses.
But the continuing hikes are sparking a wider debate on until when this market will see big increases. Based on a survey conducted by trade body ARLA Propertymark, six out of 10 letting agents believe rents will again see an upward adjustment this year. But with the government’s consideration of placing a cap on rentals, about seven out of 10 think the new terms will mean landlords paying higher costs and making tenants pay additional fees.
Jeremy Corbyn, the leader of the Labour Party and of the Opposition since 2015, had described the crisis as a “failed model of capitalism,” which he vowed to end. Capping private house rental prices, according to Corbyn, is a solution to protect tenants in the U.K.
For some who had no choice but to pay for high and often unreasonable rentals just because the landlord can impose such prices, the proposal may be perceived as an effective solution, The Guardian reported. But the planned policy is also drawing opposition especially from the Residential Landlords Association (RLA), which will be most hit by such capping measures.
The group argued that the policy would aggravate the situation, rather than serve a solution to tenants. They also said the rates in rent hikes depend on inflation. For instance, January 2018’s consumer price index landed 2.7%, while rent increases were way below the inflation mark.
RLA policy director David Smith, instead, blamed the government’s “punitive tax increases,” which will make the dent in the rental industry wider and wider in the following years.
For The Property Hub co-founder Rob Bence, the government is looking at ways to address problems, but this is just the tip of the iceberg. Instead of launching a crackdown against landlords for high rentals, the state must act on constructing new houses that can be rented and purchased.
MakeUrMove managing director Alexandra Morris echoes the same sentiment. She added that rent controls merely resolve “a symptom of the problem” while neglecting the whole property market that is in dire need of supply.
Platinum market to enjoy a blissful 2018 thanks to jewelry demand
What do trade tariffs really mean?
Say bye to Bitcoin: 7 other cryptocurrencies to invest in
What cryptocurrency bubble? An expert believes it won’t happen
4 tips on how to buy from China and make profits online
One of America’s oldest gold mines enters the crypto-century
Harbinger Research recommends ‘phenomenal’ PotNetwork as ‘Strong Speculative Buy’
This hemp market player’s growth is about to go into overdrive
CBD stocks emerge strong in the growing cannabis industry, marijuana legalization
Essential format components to include in your newsletter
Promoting women’s football in Malta by UEFA projects
Euro NCAP marks its 20th anniversary with two crash tests
European Parliament’s International Trade Committee backs CETA
The American Heart Association has released four new PSAs
PwC presents 20th global CEO survey results in Switzerland
Crypto4 days ago
Is the world ready for Amazon cryptocurrency?
Crypto5 days ago
Blockchain is disrupting the business landscape—here’s how
Business5 days ago
NFL free agency: The biggest loser and winners this year
Business5 days ago
4 times Instagram has changed how we do social photo-sharing
Auto2 days ago
Mercedes-Benz to unveil new SL-class soon
Featured4 days ago
Be ‘career-wise’: Work tips from the bosses
Agriculture5 days ago
Corn for the bulls and beans for the bears
Featured4 days ago
New Zealand firms are a good opportunity for ethical investments