UK renters are being forced to delay personal and professional milestones due to rental market chaos - with rents and demand at all time highs, and supply at near 10 year low.
The hidden consequences could have a long term impact on finances, people's careers and life plans, mental health and, ultimately, the UK's economic recovery.
New SpareRoom research reveals that 98% of renters are concerned about the current state of the UK rental market, with high rents being the key worry.
Renters putting plans on hold
The current rental market has meant many people have had to put life plans on hold due to affordability. The key plans being affected are:
- moving into their own place (64%)
- traveling (30%)
- moving in with their partner (15%)
72% of renters have postponed moving
72% of tenants who haven't moved in the past 18 months say they decided to stay in their current property despite wanting to move.
Key reasons were:
- Available properties were out of budget - 82%
- Lack of supply - 46%
- Available supply was lower standard than they wanted - 46%
- High levels of competition - 43%
- They'd have had to leave their current area to afford to move - 37%
- Properties were let too quickly to secure a viewing - 33%
- Didn't want to get into a bidding war - 27%
Nearly ¾ say the rental crisis has negatively impacted their career progression
Almost three quarters (73%) say the rental crisis has had a negative impact on their career progression.
Two thirds (65%) of renters said they'd consider turning down a job opportunity to avoid having to look for a new place in the current market and a third (33%) have already turned down a new job opportunity to avoid having to relocate.
Key things people said they had to forego by rejecting a job offer:
- Higher pay - 58%
- Better work/life balance - 50%
- Career progression/promotion - 43%
- Easier commute - 38%
- More rewarding work - 37%
- More flexible hours - 36%
97% feel the prospect of house hunting makes them anxious!
Stress in the rental market is also affecting the nation's mental health, with almost everyone surveyed (97%) admitting that the prospect of house-hunting in the current climate makes them anxious.
Why does this matter?
The current rental market isn't working for anyone. Renters are stressed and struggling, landlords are leaving the market and our workforce is becoming less and less flexible by the day. Both the Conservatives and Labour are heading into the next election promising to grow the UK economy and jobs play a big part in that. Jobs are the number one reason why people relocate, but if people are unable or unwilling to move to take those jobs, the nation's economic growth may well suffer too.
Why is the rental market so screwed?
In September 2022 we reported some startling data that showed just how drastically new government legislation has backfired and helped create the worst rental crisis in living memory.
Rental demand hit an all time high in 2022
Demand for rooms hit an all time high in 2022, while supply was at its lowest point in almost a decade. As a result, rents rose to record highs in almost every major UK town and city.
Why are there so few rooms?
The main reason is that landlords are quitting the market.
Around five years ago, the government brought in new legislation, which increased landlords’ costs and drove rents up as a result. You can see a decline (in the graph above) in the number of rooms available from around the time the changes came into force around five years ago. When we recently polled landlords, a third told us they were reducing the number of properties they have this year and 16% said they were quitting altogether.