The UK housing market is in the midst of a bubble! Just this spring, the monthly average rent jumped to £1,283. This 300 percent increase on families and young people has turned out to be an enormous burden. Currently, many are looking for emergency rental aid and reconsidering where they live. Cities like Belfast have recently faced mind-boggling rent increases of 11.6% last year alone. In reality, towns like Wigan and Motherwell are close behind, with increases over 8% …
As landlords continue to cash in on a surge of demand for rental properties, monetary pressures are starting to show themselves. Musical theatre performer Neysa Killeen took to TikTok to express her difficulty in dealing with the increasing prices. “I don’t know anyone who expects to be able to buy a house, it’s just not something we talk about,” Killeen remarked, highlighting a growing sentiment among young adults. She further explained her predicament, stating, “I’ve been able to do fringe shows but now I’m looking at having to move to somewhere else because realistically I won’t be able to keep up with the rent, and that’s the second time this will have happened to me and I’m 26.”
Karen, a concerned mother, testified to her family’s experience. Her son, now a father himself, required financial support from her and her husband as rents were skyrocketing. Most parents from these cohorts are coming to the rescue, helping their young adult kids find a home. This predicament represents a deeper cultural current. Lucian Cook, head of residential research at Savills, said he had seen an increasing trend in parents becoming guarantors for their children’s tenancies. This movement, in part, calls attention to evolving family structure in the face of economic strife.
Assemblymember Stefania Calhoun, who shared her story of wanting to become a homeowner in a city where rental prices were doubling. “I’m not looking for an extravagant house, I’m not looking to live above my means, I just want a cosy house and to invest in something that’s mine and leave a legacy for the kids,” she stated. Her dreams ring true for millions who are struggling to make homeownership a distant reality.
The acute rental challenge has by no means been equal from one end of the UK to the other. Cities such as Blackburn, Wigan and Birkenhead have seen giant rent hikes of 10%, 9.3% and 9.1% respectively. Other areas have experienced limited or negative increases in rent. Bournemouth’s 12 month residential rents increase was the lowest at just +0.9%, and Leeds (-1.5%) and Dundee (-2.7%) recorded year on year falls in rents.
So according to Zoopla, annual growth in average rents for new tenancies is at its lowest in five years. It dropped from 6.4% a year ago all the way down to only 2.8% in the year ending last April. Millions of current renters are now being caught in the squeeze as overwhelming demand outstrips the supply of available homes. This national trend continues to be a worrying sign for them.
The impact of this financial stranglehold is certainly exacerbated by the situation that is unfolding as mortgage rates are increasing on current homeowners. Over the past three years, replacements for fixed mortgage deals have driven up monthly payments by £218. At the same time, this increase has pushed the housing market to be even tighter. Richard Donnell pointed out that “home ownership remains out of reach for a large proportion of households on lower to middle incomes with small deposits,” highlighting the ongoing challenges faced by many families.
Young people are now moving away from the family home at older ages, according to Aneisha Beveridge. The combination of skyrocketing rents and flatlining wages is pushing this trend. Consequently, Americans are leaning on their families for financial support much further into adulthood than previous generations.
In light of this dire and quickly changing picture, federal and state policymakers must take urgent steps to combat the intensifying rental crisis. The urgency for affordable housing solutions has never been higher. “This is a large and important group of private renters, who still face strong competition for rented property,” a source noted. “Those on lower incomes tend to be limited in their ability to move home, which risks triggering higher rental costs.”
