As demand continues to surpass supply in the rental market figures from the group of stamp duty experts show that on a national level an average of 17% of renters are having to endure other competitive tenants moving against them
Around one-in-five renters have lost out on a property due to a bidding war in the last two years with tenants in London, Brighton, Southampton and Manchester fairing worse than most, according to research from Cornerstone Tax.
As demand continues to surpass supply in the rental market figures from the group of stamp duty experts show that on a national level an average of 17% of renters are having to endure other competitive tenants moving against them.
In Southampton 28% of renters are forced into a bidding war followed by 27% in Brighton, 26% in London and 20% in Manchester.
But David Hannah, Cornerstone Tax Chairman, reckons that the flurry of legislative attention surrounding the rental market, including the proposed abolition of no-fault evictions, is providing a positive step in the right direction.
He adds: Our data highlights a clear issue in the UK’s rental market, many of these landlords took out mortgages on BTL schemes during a period of sustained low interest rates; fast forward to 2024 and the pressure currently facing landlords is simply too much.
Soaring interest rates and the highest tax burden since the Second World War have compelled thousands of landlords to sell up, which then puts further pressure on renters because of a lack of stock, he adds.
He says: It is unfortunate that many renters from across the country now feel the need to jump through multiple, previously unnecessary hoops to secure a rental property – the Government’s proposed Renters (Reform) Bill would undoubtedly relieve the stress of many tenants, but I would argue that policymakers ought to be evaluating the root causes of the current rental market turmoil.
He adds: Whilst it is positive to see many of the UK’s major mortgage lenders cutting their rates, with the effective rate of interest dropping to 4.9%, the dream of home ownership remains a pipe dream for many. What’s needed going into 2024 is a commitment from the BoE to prioritise FTBs by signalling further cuts to the interest rate.
