Landlords, take note! A staggering 35% of your tenants are struggling to pay their rent. This concerning figure has jumped from 32% last year, signalling a growing affordability crisis in the private rental sector.

New research by the TDS Charitable Foundation surveyed over 2,000 renters and uncovered some worrying trends:

The Rent Surge:

• Average rents have shot up by 7% across the UK.
• Smaller towns have been hit hardest, seeing an 11% increase in average rents.
• Surprisingly, suburban rents have actually dipped slightly by 0.3%.

The Affordability Struggle:

• Over a third (35%) of all renters are grappling to make their monthly payments.
• The situation is even more dire for vulnerable groups:
  • 56% of renters with long-term sickness or disability are struggling.
  • 45% of student renters are finding it tough.
  • 43% of renters on benefits are facing difficulties.

Cutting Back on Essentials:

• 55% of renters have been forced to make cutbacks on basic necessities like food, heating, and clothing.
• Families are feeling the pressure most acutely:
  • 72% of single-parent renters have resorted to cutting back.
  • 62% of all rented households with children are struggling to afford essentials.

The Political Landscape:

While the major political parties have pledged to abolish Section 21 ‘no-fault’ evictions, the TDS Charitable Foundation warns that this alone won’t solve the problem.

What Landlords Need to Know:

The Foundation stresses that tackling the root causes of the affordability crisis is crucial. This means addressing the imbalance between rental supply and demand, curbing rising costs within the sector, and ensuring stability in housing benefit rates.

Dr Jennifer Harris, Head of Policy and Research at TDS Group, warns:

“Being able to afford a home should be a given, not a luxury. However, our research highlights the immense pressure many tenants are under, with potential implications for landlords facing rent arrears.”

She adds, “Ending Section 21 is a start, but it won’t address the fundamental issue of affordability. The next government must think beyond quick fixes and tackle the supply-demand gap, reduce sector costs, and provide clarity on housing benefit levels. This will allow both tenants and landlords to plan for the future.”

In short, the private rental sector is at a crossroads. As a landlord, it’s crucial to stay informed, adapt to the changing market, and ensure your investment remains secure.