Rents across Cardiff have skyrocketed as cost of living and inflation increases.
As recession looms in United Kingdom, the economy is expected to shrink by 1.4% in 2023 due to which rents are likely to increase across the country.
According to the Index of Private Housing Rental Prices, private rental prices paid by tenants in the UK rose by 3.8% in the 12 months to October 2022, up from 3.7% in the 12 months to September 2022.
Gayashini Sammani, a student from University of South Wales living in Newport hopes to rent a house in Cardiff but the hike in rent worries her and she doesn’t see a brighter day in the near future “When I came here initially, the rent was £440 per month and now, it’s £550 per month. Compared to the previous year, it’s hard”, she said.
“And the tax really doesn’t help.”
Annual private rental prices increased by 3.2% in Wales in the 12 months to October 2022.
One of the Mortgage Co-ordinator of Monmouthshire Building Society, Josh Davies believes that the spike in rent is because of supply shortages. Higher demands in rental homes and lesser supply has led rent go through the roof. “People come to us looking to see more options apart from renting”, he said.
“There is an option of Lifetime ISA, it’s a saving Government scheme to help people get houses especially first-time buyers. It’s limited but it’s something from £100 to £200 a month and if you use it towards a deposit of the house, the Government will give you extra 25% bonus.”
“We are seeing a shift of people from renting to buying as the rent is going sky high and mortgages are traditionally cheaper.”
With rise in interest rates and the recession, houses in good locations are likely to be affected more.