Renters see biggest annual rent rise since 2016

Isn’t it interesting that the ONS report the statistics this way?

Maybe I’m becoming cynical in my old age, but they could equally have said: -

Average rent increases have been 6% lower than inflation in 2022.

Why is it that every headline I see these days appears to be anti landlord propaganda?

Reply to the comment left by Mark Alexander - Founder of Property118 at 15/12/2022 - 03:43
Yes, good point.

Lies, damned lies and statistics.

On these figures rent increases in Scotland have been 113% of those in England (4.4/3.9), and 142% of those in Wales (4.4/3.1). So much for rent freezes then ;-).

PS: Rent rises are being driven up by government policy and the Bank of England. Landlords are squeezed between HMRC and the financial services industry.

With statistics a lot lies in the presentation. As Mark points out the ONS could have qualified the statement by saying that with inflation at 11% the fact that average rents outside London have risen by only 4% is an indication that landlords are trying to help their tenants out. However, to say this is against the promoted populist belief that landlords are all heartless money grabbing individuals charging exorbitant rents for mouldy hovels, evicting tenants if they complain or evicting them to get more rent.
Statistics show that most PRS landlords tend to be older and have one or two rental properties. As a result they tend to own property outright so are not directly affected by interest rates. They might have started out charging market rent but also have some empathy with tenants and don’t seek to milk them at every opportunity, so their rents fall behind. A lot of these landlords will not have raised rents at all. The 4% rise is probably due to new tenancy double digit rises being averaged out over all rental properties.

Reply to the comment left by northern landlord at 15/12/2022 - 16:33
Which statistics show that most PRS landlords are older, own property outright and are not directly affected by interest rates? The landlords I've chatted with are presently putting rents up because they are affected by interest rates. I only know of one that isn't.

Take a look at the Government English Private Landlord Survey 2021

Reply to the comment left by northern landlord at 15/12/2022 - 16:47
So that's here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1078643/EPLS_Headline_Report_2021.pdf

That says that 94% of landlords had acquired their first property with a buy to let mortgage.

Where in this report does it say that older landlords aren't affected by rising interest rates?

Take a look at the government English "Private Landlord Survey 2021" landlord profiles section

That says (section 1.31) "...for those who had existing loans or borrowing...the median loan to value ratio was 48%.."

There's nothing in the landlord profiles section that I can see that says that older landlords aren't affected by debt. Maybe I missed it. What section of the report are you referring to?

Sorry repeat entry was a mistake. While maybe most landlords started out as BTL. Older landlords will have taken mortgages out years ago so they are either paid or the repayments are now so low that interest rate rises have little effect. Older landlords are not affected by debt so much as they are by rising costs for maintenance and regulation etc.