Rents rise by highest amount in two years as landlords hit back over government clampdowns
RENTS have risen by the highest amount in two years as landlords hike prices amid a Government clampdown on buy-to-let properties.
Bills have gone up by 1.3 per cent on average in the year to May - the biggest annual rise since September 2017.
The new figures have been analysed by the Office of National Statistics (ONS) which monitors national rents.
It means that someone who was paying £500 a month rent in May 2018 is now forking out £506.50 a month or an extra £78 a year.
But in places like London where rents rose by 0.9 per cent in the past year, tenants paying the average £2,034 a month, according to property portal Rightmove, have seen bills rise by £219.68 a year.
Regionally, rents have risen the most in the East Midlands where they went up by 2.1 per cent, closely followed by those in the South West at 2 per cent.
Renters in the North East have seen the smallest hike with just a 0.5 per cent rise.
By country, tenants in Northern Ireland have been hit the hardest with a 2.1 per cent rise over the past year, while England saw living costs go up by 1.3 per cent.
There was a 1.1 per cent rise in Wales and a 0.8 per cent increase in Scotland.
Landlords are feeling the pinch from new rules introduced st the start of the tax year by the Government that change the way they pay tax on buy-to-let properties.
How to haggle with your landlord and bring down your rent
WHEN you first sign your tenancy agreement with your landlord your rent should be agreed either in writing or verbally.
To increase your rent your landlord must send you a section 13 notice which gives you a month's notice in writing telling you how much your rent will be increased by and the date when your rent will go up.
At this stage you should try to talk to your landlord and come to a fair agreement on how much rent you should pay.
Your landlord can only raise your rent if you agree to the increased price.
Matt Hutchinson, communications director for flatsharing website SpareRoom.com said that if you are a good tenant then you've got bargaining power.
"The first thing to bear in mind is that demand is lower at the moment than over the past couple of years.
"That means you’ve got a bit more bargaining power, especially if you’ve been a good tenant, as your landlord won’t want the expense and hassle of having to find another tenant and even potentially face a period with the property empty.
"Failing that, it’s worth seeing if you can get anything thrown in with a rent increase, such as minor bits of redecorating or any bills."
Landbay have a free rent check service to see how much rent you should be paying in your area.
You can find the rent check service
Find out more about how to haggle with your landlord to bring your rent down here.
It means they are now charged based on their income rather than just their profits.
Landlords have also struggled with the decision to scrap Section 21 rules that gives tenants more power over "no-fault evictions".
Industry insiders are warning that renters could struggle to find homes as landlords sell up amid the financial pressures.
Kate Davies from the Intermediary Mortgage Lenders Association (IMLA) said: "Growing pressure on landlords to increase rents in order to make ends meet will ultimately have a detrimental effect on renters' ability to save for deposits to buy their own homes.
"The Government should be careful to ensure that any future regulation around the private rental market does not further shrink the appetite of private landlords to satisfy the growing demand of tenants."
Most read in Money
Some experts feel that the long awaited ban on tenant fees that came into effect from June 1 will also push up rent.
The Sun previously reported how it could actually end up adding another £100 a year to bills.
Do you think you're paying too much for rent? Here's our guide on how to haggle with your landlord to drive down costs.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected]