In Wales, skyrocketing rent prices are resulting in tenants feeling more stressed as they have to adapt to a competitive housing market. For Brian Jenkins, 56, the decision to cut workers recently was difficult. After 12 years of renting, the same homeowner was forced out of his home when his landlord sold the house. When he went back onto the rental market, he was shocked to see his rent had increased by £350 per month. This sudden spike caused him to have lasting fears for his home safety.
Jenkins opened up about his fears, explaining, “I had a lot of plans for the future, but now everything is up in the air. If I am unable to get another job, then I have no clue where I’m going to be. The change has ignited a nagging fear in him. He doesn’t want to get too comfortable, in case another tsunami of change comes crashing down.
For Stephen Davison, 61, those concerns resonate even though he has received just two rent increases over his 17 years in the building. Since his job was wiped out by the pandemic, Davison has been living off of his savings to make ends meet. Here’s what he had to say about today’s rental scene. “They’re listing some properties at these crazy, ridiculous prices and I’m priced out,” he shared. His rent recently increased from £550 to £600 a month, which he considered fair but still concerning given his financial situation.
In June, the average private rent in Wales rose to £804 per month. That’s a big 8.2% jump since last year, according to the Office for National Statistics (ONS). These numbers are important because they paint a picture of the increasing challenges that renters face, as affordability is becoming an acute crisis.
Paula Spence in front her new accommodation with her family in Cwmbran, Torfaen. She enjoys its space for her children and grandchildren to visit. She and her husband Graham had downsized but needed to upsize again when their parents moved back in with them. Spence considers herself lucky to have been able to secure the right property in the face of increasing rents. We searched everywhere and couldn’t find anything available that wasn’t astronomically out of our budget. We were just really fortunate to have received this one,” she said.
Reflecting on her family’s new living arrangement, Spence added, “The family are happy and we’ve all got our own space, so it’s all good.”
The housing landscape in Wales is one of contradictions. This is the first time the average house price has exceeded £238,098 as reported in Principality’s Wales House Price Index for April to June which records a 0.7% overall rise in the last 12 months. The residential property sales also increased by 13% over this period – a good sign showing resistance in the market. Though in fact, average property prices rose in only nine regions and fell in 13.
Iain Mansfield, chief financial officer of Principality, noted that affordability challenges for first-time buyers are beginning to ease due to recent cuts in Bank of England interest rates. This positive change has brought mortgage rates within reach for more families. It would provide some much-needed relief for people looking to get into the housing market.
Douglas Haight of the National Residential Landlords Association Rent increases are about to decelerate significantly. He looks forward to this shift at a point when all landlords’ many cost increases start leveling out.
