Housing: Rent rises and rent controls
The Office of National Statistics (ONS) recently released the increases of average rent across each district in England, Scotland and Wales. It is clear from their data, the average rent in the Folkestone & Hythe District has increased.
In August 2022, the average rent in the district was £795. In August 2023, the average rent in the district was £888. Between Aug 2022 and Aug 2023 the annual increase was 11.7%. By August 2024, the average rent had increased to £1015. This is an annual increase of 14.3%. It’s the largest annual increase of any district in Kent. The average increase of rent between Aug 2022 and Aug 2024 was 27.7%. The increases have been due, in the main, to rising interest rates and mortgage costs to landlords who have feed these through to tenants.
The ONS go onto make it clear that average rental prices for various sizes of properties in the Folkestone & Hythe district. So for a 1 bed property the average rental price is £686. For a 2 bed property it is £887. For a 3 bed property it is £1106 and for 4 bed property £1508.
Many might call for Rent Control’s to be introduced, but the evidence is mixed. Rent controls are not Labour Party Policy, however, former shadow chancellor Rachel Reeves, declared that she could see a case for controlling rents in local areas, even though she did not favour a “blanket approach”.
Perhaps rent controls could be pegged to the lower of local wage growth; or the increase in the consumer price index.
Given Labour intend to increase capital gains tax on landlords, this means landlords will leave the market, which inevitably will only force rents up even further.
Finally we give the last word to the American satirist HL Mencken:
For every complex problem, there is an answer that is neat, plausible and wrong.
There could be no better verdict on rent controls as a solution to the problems of Britain’s private rented sector. However, leaving things as they are is not a solution either.
The Shepway Vox Team
The Velvet Voices of Voxatiousness
Having had rental property in the area for years, I have now left the market due to increasing persecution of landlords by government and legislation. It is no longer a sensible option for private people. I cannot understand why government are doing this. To bring more affordable homes for people to buy, they should have FIRST built council type housing for long term security and reasonable rental. Then private landlords would have naturally sold up.
Crazy, ill thought out actions by government which the new government looks set to make worse.