Property rents have seen significant progressive increases since 2020 says a Cardiff-based estate agents.
Thomas H Wood, which have offices in Whitchurch and Radyr, have been helping customers buy, sell and rent homes across south Wales for over fifty years. The experienced team has noticed a trend of upward rents since the end of lockdown which has continued to rise to the present day.
John Wood, Director of Thomas H Wood, said:
“Property rents in the private rented sector are currently very high and this trend looks set to continue, causing a headache for renters and landlords alike.
“While the Tenant Fees Act and incoming legislation like the Renting Homes (Wales) Act will help to protect renters, the additional requirements are piling financial pressure on landlords who are increasingly leaving the market and reducing the rental stock available to let.”
The Renting Homes (Wales) Act will come into effect on December 1, 2022 and will be the biggest change in the Welsh rental market since the introduction of assured shorthold tenancies in 1988.
The new law aims to make renting easier and provide greater security for tenants or ‘contract-holders’ through fitness for human habitation obligations, greater protection from eviction and more flexible arrangements for occupation contracts.
“The legislation increases succession rights for tenants and moves towards further security of tenure for the tenants, which is welcome news for renters as it offers peace of mind and certainty for their living situation.
“However, many landlords feel that the legislation is at their expense. The danger is that if landlords find the new measures prohibitive or too costly for them to continue, they will leave. By selling their rental stock, and therefore reducing the rental properties coming onto the market, the trend of high rents will only continue to rise.”
Low rental stock and high rents may also be maintained due to factors such as soaring interest rates and the cost-of-living crisis, with renters unable to get on the housing ladder as buyers.
“We have seen interest rates and inflation increase rapidly this year. As interest rates increase, so do mortgage costs with lenders increasing their rates. Amid the current market uncertainty, and coupled with the cost-of-living crisis, we would expect renters to remain in their rental properties rather than buy due to the economic impact on their savings, putting house deposits further out of reach.”
Thomas H Wood are a leading independent, family-run estate agent in Cardiff, specialising in selling and letting residential and commercial properties across north Cardiff including Whitchurch and Radyr.