Renting Archives - Amora Escapes https://amoraescapes.com/tag/renting/ Property 101 Sat, 08 Jul 2023 06:08:36 +0000 en-US hourly 1 https://amoraescapes.com/wp-content/uploads/2022/11/Amora-Escapes-Favico.png Renting Archives - Amora Escapes https://amoraescapes.com/tag/renting/ 32 32 Sydney Suburbs Where Rents Soared Most Over the Past Year https://amoraescapes.com/2023/07/31/sydney-suburbs-where-rents-soared-most-over-the-past-year/ Mon, 31 Jul 2023 05:37:36 +0000 https://amoraescapes.com/?p=4549   Renting in some Sydney suburbs has become hundreds of dollars more expensive per week…

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Renting in some Sydney suburbs has become hundreds of dollars more expensive per week than this time last year, leaving tenants struggling to find and keep affordable homes.

Many of the largest rent hikes have been in inner and beachside suburbs – where advertised rents increased as much as $500 per week – but tenants across Sydney face steep jumps.

Median weekly asking rents increased by more than a third for units in Eastlakes (37.5 per cent), Haymarket (35.7 per cent), Eastgardens (34.3 per cent) and Zetland (33.8 per cent) over the year to June, the latest Domain Rent Report shows. They were among almost one in three analysed suburbs, where apartment rents jumped at least 20 per cent.

For houses, North Curl Curl had the largest increase at 39.6 per cent, while rents in Clovelly and Rose Bay lifted 37 per cent and 33.3 per cent, respectively, equating to a $500 increase in both suburbs.

More affordable Padstow Heights, Macquarie Park and Appin were also among the suburbs with the large house rent hikes.

Sydney-wide, apartments rents climbed 27.6 per cent to a median of $670, while house rents increased 12.9 per cent to $700 per week.

Domain’s chief of research and economics Dr Nicola Powell said strong migration, returning international students and a decline in people per household, had fuelled strong rental demand, amid sluggish new housing supply and investor activity.

Some of the largest rent increases were in inner suburbs, popular with new arrivals, many of which rebounded from sharp drops when borders were closed – and were now well above pre-pandemic levels. Affordability constraints and the reactivation of the CBD were also factors, Powell said.

“Inner-city units are likely to continue to see stronger rates of growth because the pressure point is coming … from that flow back [of people] from overseas.“

PRD Real Estate chief economist Dr Diaswati Mardiasmo said the rental shortage had been exacerbated by new housing projects being deferred or abandoned because of high construction costs, and labour shortages.

“You’ve got higher demand [as immigration returns], and supply hasn’t recovered,” she said.

“Then we are also getting investors tapping out … as the cost of their mortgage payments, body corporate, and rates have gone up,” she said.

While inflation was slowing, the pace of rent rises increased on the latest Consumer Price Index figures, Mardiasmo said. Rents could rise further still, but would soon max out.

“We will hit an affordability ceiling,” she said. “When the income is not enough … people are more willing to move further out … or they’ll go for a smaller place, or try to find [a place] to share.”

This was already reducing demand for some locations and homes, with some property managers reporting a drop in applications and increase in the time taken to lease, Mardiasmo said.

A slowdown in rent increases can’t come soon enough for tenants like Shahil Gupta, who is paying $480 per week for a one-bedroom unit in Parramatta, where rents increased 22.2 per cent.

Gupta and his fiance hoped for a two-bedroom, but realised it was impossible on their budget. By the time they inspected 30-odd units they felt lucky to get anywhere in decent condition, within a half hour walk of the train station.

Parramatta renter Shahil Gupta pays $480 per week for a one-bedroom unit, and is concerned about the possibility of further rent rises.
Parramatta renter Shahil Gupta pays $480 per week for a one-bedroom unit, and is concerned about the possibility of further rent rises.CREDIT:WOLTER PEETERS

“Every place we went to was either out of budget or there was just a lot of competition,” the 28-year-old said.

“[Many of these properties] were just meeting the bare minimum … the bathrooms were dirty, there were stains on walls, in locations far away from stations, and even then, the prices were so hiked up.”

Gupta has picked up a tutoring job, on top of the four days a week he works, to cope with rising living costs, but does not know how he would cope if his rent increased later this year when his lease lapses.

Tenants’s Union of NSW chief executive Leo Patterson Ross said high numbers of people were calling for assistance with rent increases, and at the end of tenancies – because they were unable to find an affordable rental.

“These increases are pushing people out of communities … and causing a lot of distress,” he said.

Stronger protections for renters, more housing supply and rent stabilisation measures – similar to limits on rent increases in the ACT – were needed to address the crisis, Patterson Ross said.

Source : TheSydneyMorningHerald

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Renting: Number of UK Homes Available Down by a Third https://amoraescapes.com/2023/04/19/renting-number-of-uk-homes-available-down-by-a-third/ Wed, 19 Apr 2023 08:00:30 +0000 https://amoraescapes.com/?p=4050   The number of homes available to rent in the UK has fallen by a…

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The number of homes available to rent in the UK has fallen by a third over the past 18 months.

The sharp drop in the number of listings has helped drive up rents for new tenants by 11%.

Lettings agencies typically have 10 rentals compared to over 16 before September 2021, figures shared with the BBC by property website Zoopla show.

This has left people like Ruth searching for months without luck. “It seems completely hopeless”, she said.

The total number of rental properties in the UK hasn’t actually fallen. In fact, it has barely moved since 2016.

But people like Ruth are finding it difficult because they’re competing with far more other people in their search for a home, so there are fewer properties on the market at any one time.

Demand for rented accommodation has risen to more than 50% above normal levels, Zoopla’s figures show.

Zoopla draws its information from listings on its website, which cover 85% of UK properties listed for rent.

People who want to move but can’t find anywhere new are having to stay put. That means their old place doesn’t become available. And with people unable to move, fewer properties become vacant and appear in the estate agent’s window.

Even if people do find somewhere suitable, they’re likely to have to pay much more than they did before.

Ruth fell ill with fibromyalgia in 2015 and had to give up work. After splitting up with her long-term partner, she’s been stuck in the house they shared in Kent whilst looking for somewhere smaller and more affordable to rent.

“I keep the browser open on Rightmove, Openrent, Zoopla, Facebook Marketplace and there has been nothing,” she said. “I’m trying to keep positive but it’s difficult.”

Ruth is on benefits and has no guarantor. She believes this is stopping her being offered viewings.

“It made me feel like a lower-class citizen,” she said.

As part of the BBC’s Rental Health week, listeners, viewers and readers from across the UK have been in touch about their experience of the rental market at the moment. You can listen to BBC Radio 4’s Rental Health series on BBC Sounds.

“We’ve seen a big increase in demand for rented housing from record high immigration, the economy reopening [after the pandemic],” said Richard Donnell, executive director for research at Zoopla.

“But at the same time, we just haven’t seen much new investment by landlords in rented housing. And that’s creating a real crunch in availability.”

Higher mortgage rates, tax changes and new regulations for rented properties have made it less profitable for landlords to buy houses and offer them for rent.

Lou Valdini from York has been a landlord for 20 years. He used to rent out three homes, but now has just one. The mortgage on his property has gone up from £294 a month to £621 and says he’s “not making any money” and is “actually losing an awful lot.”

As well as the mortgage, Mr Valdini has to pay several thousand pounds a year for ground rent, insurance, service charges and agent’s fees. He’s just put his tenant’s rent up to £645 a month.

“She hasn’t missed a day’s rent since lockdown, so I’m not going to put the rent up an extortionate amount for her,” he said. “But it does mean I’m subsidising her.”

‘I’m not able to live with my partner’

Large numbers of landlords are leaving the market – 11% of homes for sale on Zoopla were previously rented.

For others, short-term lets, such as holiday lets or Airbnb, offer better returns than long-term tenants. Zoopla has seen a three-fold increase in short-term lets since 2019.

But with private renters spending on average almost a third of their income on rent, Mr Donnell and other experts believe rents can’t go on increasing, as people simply won’t be able to pay any more.

The government is due to introduce a new Renters’ Reform Bill in England before the summer, which it says will redress the balance in the market and provide more security for tenants. Housing rules are different in each of the devolved nations, Scotland currently has tighter controls on landlords than the rest of the UK.

Emily and her baby MJ

Emily, her partner, and their baby son MJ had been renting a two bedroom flat in Aylesbury. The landlord wanted to put up the rent at the end of their current tenancy but the family couldn’t afford it. They began searching for somewhere else to live, but it’s been frustrating.

“There’s been times when I’ve said, ‘Yes, I’ll take this one’,” said Emily, “I love it, it’s perfect, and then they’ll say, ‘It’s gone’.” It has been, she says, “the most stressful time of my life – other than having a baby,”

After months of searching, the family had to move out of their home earlier this month. But they hadn’t found somewhere new, so they had to move back in with their families – which means Emily and her partner staying under different roofs.

“On our actual relationship it’s been really difficult,” she says.

The family now have one goal: “To find a two-bed house, because then it’ll have enough space for us three.”

What are your renting rights?

  • How much can my landlord increase the rent? It depends on your agreement but rises must be fair, realistic and in line with local properties and there’s usually a months notice.
  • Can my landlord evict me? Landlords need to follow strict rules such as giving written notice. Once the notice period ends, the landlord can start eviction proceedings through court.
  • Can a landlord refuse people on benefits? No. DSS policies are unlawful discrimination. says charity Shelter. Some councils have lists of private landlords who rent to tenants claiming benefits.
Source : BBC

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