PRS is still ‘broken’ despite slower rent growth, charity warns

PRS is still ‘broken’ despite slower rent growth, charity warns

0:06 AM, 31st December 2024, About 3 days ago 4

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The private rented sector (PRS) remains ‘broken’ according to the debt charity StepChange, despite recent signs of a cooling market.

While recent Rightmove figures point to a slowing in rent growth, the charity warns that many tenants are still struggling to keep up with rising costs and facing severe financial difficulties.

The charity is calling for more PRS reform with the abolition of Section 21 ‘no fault’ evictions and a demand for renters not to be evicted ‘on other grounds’.

Rightmove’s latest study found that the average number of enquiries per rental property remains nearly double pre-pandemic levels, highlighting ongoing high demand.

Although the number of available properties has increased and tenant demand has decreased compared to last year, Rightmove predicts that average rents will rise by 3% both inside and outside of London by the end of 2025.

Reform of the PRS must be a priority

The charity’s chief client officer, Richard Lane, said: “This is yet more evidence that the private rental sector is broken and not working for tenants.

“At StepChange, private renters are significantly over-represented among our clients, while our research has consistently found that those who privately rent are more likely to find themselves facing severe financial difficulty.”

He added: “Reform of the private rental sector must be a priority.

“The Renters’ Rights Bill marks a good step forward, with an end to Section 21 ‘no fault’ evictions, however, it could go further to strengthen protections for the most financially vulnerable tenants and prevent them from facing eviction on other grounds.”

Private renters are struggling

The StepChange study reveals that more than half of private renters are struggling to keep up with bills and credit commitments.

Also, one in three have resorted to using credit to pay their rent.

Rightmove reported that average rents outside of London are currently £1,339 per month, a 4.5% increase compared to this time last year.

While this represents the slowest rate of annual rent growth since 2021, the imbalance between supply and demand means further rent increases are likely.


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Cider Drinker

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9:44 AM, 31st December 2024, About 3 days ago

The PRS is broken.

It has been broken by the government (Labour and Conservatives).

It needs to be repaired by Reform.

dismayed landlord

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13:44 PM, 31st December 2024, About 2 days ago

Very insightful.

John Wilkinson

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19:10 PM, 31st December 2024, About 2 days ago

so they basicially want to make it impossible to evict anyone for any reason...

Jack Jennings

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3:30 AM, 2nd January 2025, About 19 hours ago

The people who are buying their home and have seen their mortgage payments rise drastically over the last few years don't seem to have the same platforms to cry about it on.
The price of financing has risen and anything requiring finance will be more expensive. That includes those items which are leased.
Supply continually lagging behind demand doesn't help either but making the PRS less attractive than other investments will make this situation worse.

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