The lettings industry is facing some startling challenges. Rising living costs and rent prices combined with a low supply of available homes has left tenants and landlords feeling the pressure. In this blog, we share some of the stand-out stats facing the industry.
£3,166: The skyrocketing cost of moving
Tenants are now shelling out an average of £3,166 to move into their new home, which is a staggering 10.5% increase compared to the same time last year. This figure includes the first month’s rent and five week traditional deposit. With rental prices on the rise, the cost of moving is becoming an increasingly daunting barrier for many people, especially as wages struggle to match the same growth.
13: Fierce competition for rental properties
Competition for rental properties has never been fiercer. On average, 13 tenants are enquiring for every available property, according to data from Rightmove. This sky-high demand is pushing rental prices up and making it increasingly difficult for prospective tenants to secure a place to live without compromising.
>10%: Where traditional deposits don’t cut it
It is estimated that more than 10% of tenancies end with more than 5 weeks' worth of charges. For landlords using a traditional deposit, which are capped at 5 weeks' worth of rent, this means chasing down outstanding debt, often without success. To avoid losses, landlords are seeking extra protection and specialist debt recovery services.
20%: Rent consuming salaries
Another strong indication of rent prices rising against the growth in wages is that 20% of private tenants are now spending more than half of their gross salary on rent. Which combined with rising house prices, means renters are stuck in a vicious cycle, where it is increasingly difficult for them to save the large amounts needed to put a deposit down on their own home.
These statistics highlight the growing pressures on the lettings industry. Businesses needs to adapt and find new solutions. Our deposit alternative, flatfair No Deposit, saves tenants approximately £1200 on their upfront move-in costs while providing landlords with up to double the protection of a traditional deposit as well as specialist debt recovery.
Interested to learn more about the benefits of our market-leading deposit alternative? Book a call today.