Tenants in Bath set to feel the pinch as landlords ‘forced’ to increase rents

Half of tenants in Bath will be hit with rent rises totalling an average of £396 over a year, as 50 percent of landlords in the city say they will be ‘forced’ to increase rents in 2018, according to a recent survey.

The average monthly rent in the city already stands at £1,339, and experts are now predicting a further rise of 2.5 percent in 2018, piling the pressure on tenants who are already struggling with stagnant wages and the rising cost of living.

The impending tenant fees ban, loss of mortgage interest tax relief, and regulatory changes have all combined to create a perfect storm of financial pressures on landlords in the city, leaving half with no choice but to raise tenants’ rents to cover their costs.

As a result, tenants in Bath face paying an average of £33 a month more, totalling £594 across a typical 18 month tenancy, according to online letting agent MakeUrMove.

Despite negative perceptions to the contrary, all of the landlords with properties in Bath surveyed by MakeUrMove believed it was important to keep tenants happy, suggesting rent increases are a last resort.

Alexandra Morris, managing director of MakeUrMove said: “Rents have already been increasing year on year. It’s likely that 2018 will see tenants in Bath feel the biggest impact yet from changes in the private rental sector.

“From our experience, we know many tenants in the city are already stretching their monthly budgets to afford rental properties, and additional rent increases could be the final straw, tipping them into debt or rent arrears.”

The increases will disproportionately affect younger generations, with figures from MakeUrMove showing most tenants in the city (64 percent) are aged 18-34.

Morris added: “Our study has shown that more than half (57 percent) of landlords in Bath are small landlords who only own one property.

“These landlords often operate on very tight margins and recent changes introduced by the Government have put even more pressure on them.

“This means they will have no choice but to consider these rent increases in 2018 which will negatively affect tenants.

“The value of these landlords cannot be underestimated. They play a vital role in the city and region, adding valuable capacity and flexibility to the housing market.

“Whilst regulation of the private rental sector is essential, it’s important the Government recognises the role smaller landlords play and supports them, as the unintended consequences of not doing so will be to the further detriment of tenants in the city!”