When we first heard that the government was introducing section 24, which in a nutshell limits how much tax relief can be offset by landlords. Many property investors predicted rents would soon rise due to lower profits being made.
Add to this that in some areas there is not enough rental stock for the growing population, the old supply & demand equation sends rental figures upwards.
We have recently achieved £650 per month for double rooms with no en suite or guaranteed parking space in Dartford, and also a whopping £900 per month for large studio rooms – which is closer to the price we’d expect from a one bed flat.
In an article written by Landlord Today, we can see that Bexley has the lowest amount of rental stock in London, maybe this has something to do with the Article 4 directive in the area?
Article 4 directives have come to a lot of areas in the UK to restrict the number of house shares that can be created.
I understand the desire to Not convert the whole nation into HMO country, but if our population continues to expand and property prices keep trending upwards – Home shares, along with a tenancy deposit alternative, Must become a premium product for the growing workforce of all ages.
Franz Doerr, founder and CEO of Flatfair, said: “With London rents set to rise faster than wages over the next five years, the average London tenant is going to be more and more hard-pressed to pull together a lump sum for a tenancy deposit.”