Minister says councils must have UK Government support
Migration and Refugees Minister Emma Roddick has urged the UK Government to provide financial support for local authorities as it presses ahead with plans to close asylum hotels.
In a letter to Immigration Minister Robert Jenrick, Ms Roddick welcomed measures to end the inappropriate use of hotels to accommodate people seeking asylum along with UK Government measures to tackle the backlog in asylum decisions.
However, she said the move was placing further pressure on local services and called for increased funding to enable councils to meet the needs of refugees when they receive a positive asylum decision.
Ms Roddick said: “The Scottish Government has long been clear in our view that hotels are not appropriate accommodation for people seeking asylum.
“While I welcome your recognition that the asylum decision backlog must be tackled, I want to make clear that it is completely unacceptable and reckless for the UK Government to shift a significant burden onto local authorities without providing financial support.
“The UK Government must provide funding to local authorities and work constructively with them to ensure that people receiving a positive asylum decision are supported to move-on from asylum accommodation, without creating unmanageable pressure on housing and homelessness services over a short space of time.
“It is UK Government mismanagement of asylum decision making which has created the backlog and the consequences of that cannot be passed to local authorities without any support to manage them.
“I request urgent provision of funding to local authorities to support move-on associated with the backlog clearance.”
According to Universities UK, in 2021-2022 there were 2,185,560 studying at UK higher education providers.As another academic year approaches, the excitement of that first taste of independence will be setting in for another record number of students due to start their university journey this September.
Summer preparations will be essential – however one area that might be overlooked is the priority of electrical safety in their halls of residence.
When embarking on a new journey at university, there can be a lot to think about. And one thing that may be far from students’ minds is the potential electrical hazards and necessary precautions which need to be taken to ensure their safety.
According to data released by Electrical Safety First, electrical fires are one of the leading causes of domestic fires, with an estimated nine out of ten (89%) fires in the home caused by electrical products.[2] Faulty appliances, overloaded sockets and misuse of electrical equipment are all common culprits.
To address these concerns, NICEIC, the UK’s leading body for certified electrical businesses, is urging students to stay safe. Paul Collins, Technical Director at NICEIC, offers five top essential tips to follow when it comes to electrical safety in private university accommodation.
“Electrical safety is of utmost importance, especially in shared living environments such as university halls. By being aware, informed and responsible, students can create a safer living space for themselves and their fellow housemates.
Know the location of your consumer unit (fuse box)
It’s vital for them to be familiar with the location of the consumer unit or to give it is more common name the fuse box in their accommodation, should they ever need to point an electrician in the right direction or check if the circuit-breakers have tripped. Also, attending any induction sessions or safety briefings provided by the university or accommodation provider is recommended so they know what to do in an emergency.
Be responsible, Think Safety First
Don’t overload socket-outlets or use multiple adapters in socket-outlet’s and always unplug or switch off appliances when not in use before leaving the room or the premises – this is a good tip for keeping energy bills lower too and being more eco-friendly. It’s also advisable to carry out regular visual checks of cables and plugs and look for any signs of damage and report any issues immediately.
Stay Safe in the Kitchen
When using the kitchen, although it may seem obvious, always follow the appliance guidelines and refrain from leaving the likes of laundry appliances, toastie machines or air fryers unsupervised while in use. Avoid overloading the microwave and never put aluminium foil or metal objects in it. Always keep electrical appliances away from sources of water to prevent potential electrocution. Electricity and water DON’T mix.
Test Safety Alarms and Understand the Escape Route
To stay safe in case of a fire, be sure to test the smoke alarms regularly where you have been instructed to do so and report any faults immediately. If you are in a block these should be tested regularly by the estates team. It’s important to plan and know the escape route in case of a fire emergency and ensure that everyone in the flat is aware of the procedure. Don’t be tempted to tamper with or cover smoke detectors as they are crucial in providing early warning signs of a fire.
Be Smart and Always Seek a Professional
Finally, and vitally, do not attempt to fix electrical problems and be sure to report any maintenance issues such as electrical faults, flickering lights or other electrical concerns to the accommodation provider as soon as possible. Always, rely on a qualified electrician authorised by the accommodation provider.
“At NICEIC we strongly advise students to prioritise their safety and be mindful of the potential risks associated with electrical installations in university halls. Taking these precautions can significantly reduce the chances of accidents, property damage and personal injuries.”
For more information, additional electrical safety tips or to search for your nearest NICEIC certified business, visit niceic.com.
In a bid to beat the soaring cost of accommodation at this year’s Edinburgh Fringe Festival, a group of performers are setting up camp at a disused nuclear bunker on the edge of the city this August.
Barnton Bunker, which is situated just five miles from the centre, adjacent to Edinburgh Zoo, was built in 1944 and, in 1951, was commissioned as a Cold War shelter for the British government and the Queen in the event of a nuclear attack. Decomissioned it 1955 it now plays host to a panoply of performers including queens of a different variety!
The company of ALPHABET SOUP, a new force in LGBTQIA+ comedy, which performs daily from 4th to 27th August at Le Monde Hotel’s Shanghai Night, will be living in caravans on the Barnton Bunker site throughout festival. Housing a rich mix of world-class queer comedians, drag performers and variety acts the bunker is set to be transformed into Mad Max style digs for the diverse.
ALPHABET SOUP serves up brunch throughout the festival for the very first time. With a brand new menu every day, mixing a core company of imported performers with a daily change of locally sourced ingredients, this is a queer comedy brunch unlike any other, co-hosted 7G and the hilarious bisexual comedian Alyssa Poteet. With the concerted assault on the rights and freedoms of LGBTQIA+ people across The States and elsewhere, this is part of the fightback.
In the spirit of ‘We’re Here We’re Queer’,Alphabet Soup is comedy for combat.
7G – Alphabet Soup co-creator and camp leader says –‘When I discovered that it would be £30-£35,000 to rent a house for the month for the performers of Alphabet Soup, I thought that we would not be able to premiere our brand new LGBTQIA+ extravaganza at the Edinburgh Fringe.
“Then a West Hollywood gay friend told me that he was volunteering throughout the month of August to help restore Barnton Nuclear bunker to its World War II glory. As we LGBTQiA+ feel we’re in a war for our human rights right now, staying at a nuclear bunker feels like a God Shot.. So we met with Ben Mitchell whose family are raising £5 million to restore the facility for visitors to tell him we were in .
“Not only are we building an Alphabet Soup Glamping camp site at a fraction of the cost of a house and we each get our own room, we are also helping Ben raise the profile of his good work at the same time as planning our campaign to Love Bomb the hatred of those who seek to oppress us.”
Alyssa Poteet – co-creator and fellow camp leader says: “From the most right-wing of red states all the way to our home of Los Angeles California, you can feel the rise of LGBTQIA+ hostility growing in America.
“This concerningly well organized and extraordinarily funded culture war is being seeded in our courthouses and legislatures and seeping into and infecting the hearts of US citizens.
“As we gear up to make our presence known and provide a new narrative about LGBTQUI+ in the wake of all these blows against us, it’s fitting that we must seek refuge in a war bunkers as we fight our fight. Some may lie down at this obstacle – we’re toasting marshmallows and breathing in the fresh Scottish air”.
A spokesperson for The Barnton Bunker Preservation Society SCIO says: “We are delighted to partner with the talented team behind Alphabet Soup and welcome them to Barnton Bunker.
“By joining forces, we aim to raise the profile of Barnton Bunker and its restoration efforts, while at the same time giving the Alphabet Soup team a safe, secure, and affordable solution to their accommodation issues during their stay at The Edinburgh Fringe Festival.
“We extend our warmest thanks to Alphabet Soup, the LGBTQiA+ community and their entire team for their dedication, creativity, and commitment to making a positive impact. Together, we can transform Barnton Bunker into a unique destination that celebrates history, creativity, and the power of collaboration.”
Summary of the Society’s work over the past 12 months accompanied by headline findings from surveys
This morning the Edinburgh Festival Fringe Society launches its review of the year: an in-depth look at the work it has accomplished over the past 12 months.
With unease caused by a new wave of COVID in early 2022, there was still uncertainty that a fully formed Fringe could take place this August. However, against what felt like impossible odds at times, the Fringe re-emerged in glorious technicolour, with local performers joined by artists from across the UK and 63 nations.
In June, Fringe Society President Phoebe Waller-Bridge launched the Fringe Society’s new vision – to give anyone a stage and everyone a seat. This was followed in August with the announcement of new alumni Patron, Eddie Izzard, who started her career as a street performer on the famous Royal Mile.
As the festival approached,activities to celebrate the Fringe’s 75th anniversary took place, through memories collected from audiences and artists over the years.
The popular street events programme expanded into new areas of Edinburgh’s city centre, with over 3,200 performances taking place, and the Fringe Central participants’ hub opened its doors to over 2,100 arts industry, media, producers and visiting delegations.
Projects such as Fringe Days Out and the Children and Young People ticketing scheme returned as the Society continued with local schools and community groups. These vital initiatives supported children, young people, and those across Edinburgh who might not otherwise get to experience the Fringe.
By the end of August, over 2.2m tickets had been issued, and artists from 63 countries had performed in over 3,400 shows across Edinburgh.
Read the Fringe Society’s full review of the year 2022 at:
Following a year of heightened interest in the Society’s work, today the Society also announce the headline results from a mass feedback project, launched in September.
A significant part of the Society’s annual evaluation is surveying a broad group of stakeholders. This year was no different, with the largest listening drive since 2019. The Society commissioned Scotinform to facilitate surveys to registered artists, audience members, venues, workers, arts industry and media, who combine to create the Fringe ecosystem.
More than 10,000 responses across the surveys were received, with results now being used to support the development of new projects, and to target our future plans. These vital data insights also give us the evidence base we need to advocate for focused support and address some of the challenges identified by the Fringe community.
The positioning of the festival continues to be strong: 76% of audience members agreed that the Fringe is one of the most important cultural eventsin the world. When asked for motivations for attending the 2022 Fringe, respondents cited seeing a variety of events/performances (76%) and enjoying live performance after the pandemic (49%).
Edinburgh’s residents continue to be vital to the festival: 65% feel the Fringe makes the city a better place to live, alongside 75% who feel it makes Edinburgh a better place to visit. With the cost-of-living crisis likely to extend into 2023, 66% of audiences would like ticket offers or discounted tickets, with 91% of Edinburgh residents interested in a discount for EH postcodes.
The live experience continues to be a major motivator, with only 7% agreeing that they would like to see more online shows at the Fringe. As we look ahead to 2023, there is continued optimism from audiences, with 81% of respondents stating they are likely to come to the Fringe in 2023.
Unsurprisingly, following the intense interest in a Fringe app for 2023, 46% of audience respondents said they felt an app would have improved their Fringe experience, with 66% stating they would use an app in the future. This aligned with artist feedback, with 71% stating a Fringe app is very important to them. Work on the 2023 app is already underway and details on its functionality and launch timings will be announced in the new year.
For artists, the Fringe continues to be a core platform for artists’ careers, with 82% of those attending the Fringe for the first time doing so for professional development reasons. For returning Fringe artists, experiencing the Fringe was the biggest motivator, with 82% citing this as the main reason.
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Accommodation continues to be a concern for many performers: 87% of artists felt that affordability of accommodation and living costs will be a barrier to future participation in the Fringe; however 70% of artists said they are still likely to bring a show to the Fringe in the future. Interestingly, 17% of artists did not engage directly with the Society, and as such were not aware of the full offering of services available to them such as Fringe Connect and Fringe Marketplace.
While a small sample of workers responded to their survey, the Society continues to review how we reach and support this group more. Recognising work undertaken in support of the Real Living Wage, 77% of Fringe workers said they were paid on or above this benchmark at this year’s festival. 91% were also satisfied that they had a line manager to seek help from, if and when they needed it.
In addition to the statistical information, Scotinform evaluated free text responses across the surveys. In general, there was an appetite for more information to be shared with all respondents, at more regular points of the year.
Advance detailed information was clearly sought, and as such The Society is refining its communications strategy to ensure first time, and returning artists, have the year-round support they need to attend the Fringe in the future.
Shona McCarthy, Chief Executive of the Edinburgh Festival Fringe Society, said: “It’s easy to forget how tumultuous this year has been – between Omicron variants, the cost-of-living crisis and de-stabilising world events, it feels miraculous the Fringe happened at all.
“The fact that it did is a testament to the concerted effort and support of a cast of thousands, including artists, audiences, venues, media, staff, volunteers, crew, sponsors, elected officials and the city of Edinburgh itself.
“Improvements can always be made, and the insights and data gained from our recent listening exercise are already being taken forward.
“We recognise that there are ongoing challenges, and our team are working hard behind the scenes to continue to advocate for our artists, and to support audiences as they plan for Fringe 2023.”
Measures to establish consistent standards across the country
A new licensing scheme for short-term let hosts opens today [1 October], aiming to ensure consistent safety standards while reinforcing the positive reputation of Scottish tourism and hospitality.
The licensing scheme was developed in response to concerns raised by residents about the impact of short-term let properties on their local communities. It gives councils flexibility to develop licensing schemes that meet local needs, and sits alongside powers for councils to establish short-term let control areas.
To comply with the licence, hosts will be required to meet a set of mandatory conditions which apply across Scotland, plus any additional conditions set by their council.
Anyone operating as a host before 1 October has until 1 April 2023 to apply for a licence and can operate until their application has been determined. New hosts must obtain a licence before accepting bookings and welcoming guests to stay.
A targeted digital marketing campaign to promote the licensing scheme also launches today.
Housing Secretary Shona Robison said: “Our new licensing scheme will support responsible operators and give guests the confidence that their short-term let – be it a flat in Edinburgh, a property for a business trip to the Borders, or a cottage in the Highlands – meets the same set of safety standards.
“These new conditions include measures such as displaying an energy performance rating on listings, or securing valid buildings and public liability insurance. We know the vast majority of short-term lets businesses are already following these safety standards as a matter of best practice, and some are already required by existing legislation.
“We know short-term lets make a positive contribution to Scotland’s tourism industry and local economies, and these measures will allow them to continue doing just that while ensuring this is balanced with the needs of local residents and communities.
“The deadline for applications from existing hosts is 1 April, and I would urge all hosts and operators to contact your local authority as early as possible to learn how to apply.”
Malcolm Roughead, CEO at VisitScotland, said: “The small accommodation sector is a key contributor to the economy and our high-quality and varied offering is one of the things that makes Scotland such a special destination.
“Through an Industry Advisory Group, we’ve been working closely with representatives from across the sector ahead of introduction of the licensing schemes.
“We’ll continue to give both new and established businesses the right advice to help them through the process of applying for a short-term let licence.”
The UK’s grimmest student houses revealed: Brighton flat crowned the messiest in nationwide search
Winner and runners up revealed in UK’s messiest student competition
A female student from Brighton University has been crowned the UK’s messiest as part of a nationwide competition.
20-year-old Sarah, who is studying PGCE, sent in pictures of her kitchen in a state of carnage, which she shares with her four flatmates, after a wild night out.
She has been crowned the UK’s messiest student as part of a photo competition by insurance providers, SO-SURE, and has now been awarded a £200 Just Eat voucher, which should hopefully help her avoid the washing up. Here is her winning entry, as well as a roundup of five of the worst offending pictures from across the UK:
1. Sarah, 20, Brighton University
Mmmm floor pizza! And a kettle in the sink?!
This sight is not something you want to have to deal with after a heavy night on the tiles. The sheer volume of chaos in this picture earned Sarah and her pals the £200 food voucher, so they can add a few more takeaway boxes to the collection!.
2. Natasha, 21, Derby University
Natasha, a student from the University of Derby, is a little behind on her laundry, oh well, floorspace is overrated any way. Extra points for spotting her opportunist cat who hopes she doesn’t find the washing machine any time soon.
3. Josh, 19, Nottingham Trent University
Josh from Nottingham Trent University shared this spectacular image, can you spot his house mate amongst the mess? Looks like the two of them have a lot of cleaning to do on a hangover…
4. Jack, 19, Oxford Brookes University
We’re not 100% sure how Jack, from Oxford Brookes University, manages to get around his room. Clothes, bedding, and dodgy meal deals everywhere, it’s ok though, at least he has incense sticks.
5. Cassie, 20, Bournemouth University
Maximising wardrobe space by leaving everything on the floor, this ‘messy gal’ is one step ahead of us all. It can’t be easy finding an outfit in that pile of clothes.
6. Max, 21, Cardiff University
Finally, someone found the bin bags! Looks like the clean-up of Max’s living room has already started here, what could it have looked like before?! Stella, Greggs, and Red Stripe, a classy combo and student staple.
If you haven’t got your fill of messy student accommodation, you can find even more entries on the SO-SURE blog.
Senior Marketing Manager, Gabriel Cabral at SO-SURE, commented: “We often hear students have a reputation for messy flats and a party lifestyle. And so, we wanted to put this to the test and find some of the filthiest in the UK.
“We wanted to give the winners of the messiest accommodation a takeaway voucher, so they can treat themselves to a takeaway after a good old tidy. We had some great entries, from universities all over the UK, but Sarah’s kitchen in Brighton is definitely a worthy winner!”
Post-pandemic surge in demand sees rents hit record high
The appeal of living in the Scottish capital has been reignited, with new figures showing a resurgence in demand for city properties that has pushed rents to record highs.
New research from property letting portal Citylets, shows the average monthly rent in Edinburgh rose 14.2% year on year (YOY) to an all-time high of £1,214, well above the Scottish average of £896.
Figures also show that the average Time To Let (TTL) – the period a ‘for rent’ sign is displayed at the property – is just 16 days, lower than the Scottish national average of 18-25 days across one, two, three and four bedroom properties.
Thomas Ashdown, Managing Director of Citylets said: “City living is back. During the pandemic growth slowed in most cities and accelerated in surrounding areas.
“Now people are back to office working, at least at some level, and seem confident there won’t be any more full lockdowns. The appeal of the city lights appears to have endured some extreme disruption, it would seem.”
However, he pointed out that letting agents remain concerned about the supply of available properties in the private rental sector, with many landlords continuing to sell up while the market is buoyant – or to avoid the threat of increased regulation and the costs that will bring.
The Citylets quarterly report for the first three months of 2022 shows demand for rental properties across Scotland exceeded supply in both rural and urban areas. However, the numbers of available properties was slightly higher than the historic lows reported the last quarter of 2021.
By postcode Edinburgh’s rental hotspot for one-bedroom properties was EH16 (including Cameron Toll, Craigmillar, Liberton) where the TTL was only seven days, while the TTL for two-bedroom properties in EH14 (including Slateford, Longstone, Wester Hailes, Balerno) was an average of only nine days.
At the top end is the EH3 region (New Town, West End, Tollcross and Fountainbridge) which has the highest property prices throughout Scotland, averaging £1,001 for a one-bedroom, £1,482 for a two-bedroom and £1,923 for a three-bedroom property.
Mr Ashdown said: “Despite relentless economic worry and the conflict in Ukraine that will further impact on the cost of living, the market is very busy. People want to get on with life and make decisions now which may have been postponed in recent months.
“While there is slightly more supply of properties than there was at the end of last year, it’s not a widespread phenomenon and this is not something can always be addressed quickly. The consequence of that is, with no sign of demand reducing, rents may continue to rise throughout 2022.
“While it’s reassuring to see that cities are coming back to life, rent rises of this order are likely to prove problematic for many, given the ongoing cost of living crisis. This is not a discretionary purchase – you have got to have somewhere to call home. More choice in the sector and indeed more widely in housing would, of course, help.”
Charlie Inness, of Edinburgh letting agent Glenham Property said: “Edinburgh has moved from an oversupply of stock to one of a severe undersupply with high tenant demand and unprecedented activity levels.”
He added: “Properties are letting extremely quickly with multiple applications received for each listing. We do not expect the shortage of supply to change as investors are either exiting the market or are cautious of entering due to the uncertainty created by the Scottish Government’s proposals for increasing regulation and artificial control of the sector. Due to this, we expect upward pressure on rents to continue to the detriment of tenants.”
The figures highlighted in the quarterly report show that available properties were being snapped up rapidly in Edinburgh, with 39% of properties let within one week and 84% taking less than a month to be let.
Jamie Kerr, of Edinburgh’s Ben Property said: “Quarter 1 of 2022 has seen an extraordinary surge in demand across Edinburgh and strong rental levels are being achieved with a short time to let.
“However, while the market is extremely busy and properties are letting faster than ever, there is a worrying lack of supply across the board which should be a wake-up call for the Government.
“There needs to be more investment in social and build to rent housing, and a deeper understanding of the vital role played by the private rental sector, encouraging private landlords and investors, not discouraging them. Only this can redress the balance of supply and demand and calm rental levels accordingly.”
Citylets operate Scotland’s premier residential lettings site with over 50,000 properties per year from over 400 local agents. The Citylets quarterly rental report was launched in 2007 and has since become a respected guide for housing professionals including social housing and public policy makers.
The report and associated rental maps are available for download at Citylets Rental Reports.
Acute rental demand over Q3 2021 has pushed UK rental growth to its highest level since 2008
Annual rent growth has increased by 7.2% in Glasgow and 3.6% in Edinburgh
Demand continues to outstrip supply, which is running at 43% below the five-year average – exerting an upward pressure on rents
Average UK rents are now tracking at +4.6% on the year [and 6% excluding London], after climbing 3% over the last quarter – with rental demand doubling in central Leeds, Manchester and Edinburgh and London in Q3 v. Q1
Rental growth is close to, or at, a 10-year high across most UK regions – except for in London and Scotland
After 15 months of consecutive falls, London’s rents have swung back into positive territory, rising by 4.7% between June and September, as offices reopened and city life resumed
The structural undersupply of rental properties across the country and the strength of the employment market will support rental growth into 2022
UK rental growth [excluding London] is set to ease slightly to 4.5% by the end of 2022
UK rental market growth has reached a 13 year high as renters rush back to city centres, reports Zoopla, the UK’s leading property portal, in its quarterly Rental Market Report.
Record price growth defines new era for the UK rental market
Acute tenant demand over the third quarter of 2021 has propelled UK rental growth to its highest level for over a decade [13 years].
The market is being shaped by an ongoing supply and demand imbalance, with demand continuing to outstrip supply, which is running at 43% below the five year average and exerting an upward pressure on rents.
The imbalance has been compounded by both long-term structural issues such as landlord divestment following the 3% stamp duty levy introduced in 2016, and more the immediate post-lockdown demand, which collectively have eroded available supply.
Average UK rents are now tracking at 4.6% year on year, after climbing 3% over the last quarter. Excluding London, where the market has lagged, average UK rental growth has reached a 14-year high of +6%.
Rental growth is also explained in part by tenant demand moving up the price bands [see figure 1]. This reflects the ongoing search for space, which has not only characterised the sales market, but the rental market, too.
UK monthly rents now account for 37% of an average income for a single tenant occupant; however, even with strong rental growth, the measure of affordability remains in line with the five year average [see figure 2]*.
The regions registering the highest levels of rental growth are among those that are the most affordable when compared to the UK average, and as such, there has been more headroom for rents to increase.
Rental growth is close to, or at, a 10-year high across most UK regions – except for in London and Scotland. Rents are up most in the South West (9%) year on year, followed by Wales (7.7%) and the East Midlands (6.9%).
In many of the UK’s largest cities, annual rental growth is running well ahead of the five-year average rate of growth. Bristol leads with 8.4% growth in the year to September, followed by Nottingham at 8.3%, and Glasgow at 7.2%.
Rental demand in the central zones of Manchester, Edinburgh and Leeds has at least doubled over Q3 compared to Q1, and in Birmingham demand has increased by 60% – buoyed by the return of office workers and students, and the lure of city life.
Figure 2
London rents rebound into positive growth – but remain lower than pre-pandemic levels
After 15 months of consecutive falls, London’s rents swung back into positive territory, up +4.7%, in Q3. This amounts to annual growth of +1.6% compared to falls of almost 10% at the start of the year.
As with other major UK cities, market activity rose significantly in Q3, with tenancies agreed in London running 50% above the five-year average, underlining the bounceback in the market as offices reopened and city life resumed.
Despite this upward trajectory, given the falls over the last 18 months, average London rents are still 5% lower than they were at the start of the pandemic.
Rents forecast to rise by a further 4.5% by the end of 2022
Looking ahead to the new year, the structural undersupply of rental properties across the country is expected to support rental growth into 2022.
In addition, the supply shortage coupled with the strength of the employment market which, despite the pandemic, is set to remain robust, will in turn support demand and sustain rental growth.
While the level of rental demand might ease in the near term in line with seasonal trends, demand levels will remain higher than usual, especially in city centres, where there is an element of pent-up demand being released.
On the supply side, rental stock will remain tight, amid lower levels of investment into the sector by landlords, and this will underpin rental pricing. There is more leeway for stronger rental growth in areas of the country where rents are relatively more affordable, suggesting that rents could rise above earnings outside of the south of England, supporting rental growth across the UK excluding London at 6% in 2021 and 4% in 2022.
Meanwhile, London rental growth is expected to pick up to 3.5%, with rents ultimately exceeding pre-pandemic levels.
Gráinne Gilmore, Head of Research, Zoopla, comments: “The swing back of demand into city centres, including London, has underpinned another rise in rents in Q3, especially as the supply of rental property remains tight.
“Households looking for the flexibility of rental accomodation, especially students and city workers, are back in the market after consecutive lockdowns affected demand levels in major cities.
“Meanwhile, just as in the sales market, there is still a cohort of renters looking for properties offering more space, or a more rural or coastal location.”
*The methodology Zoopla has used to calculate affordability has changed from the last quarter; Zoopla is now using ASHE data, and previously used the Labour Force Survey.
One year on since the housing market reopened, and the Covid-led decline in rental demand for city centre housing is bouncing back
As the UK emerges from lockdown, renter demand is up 26% in central Edinburgh, 12% in central Leeds, 7% in inner London and 5% in central Manchester in the month since Easter
London’s rental demand is being fuelled in part by a sharp improvement to affordability; with rents down -9.4%, affordability is running at a ten year high
Average rents in the City of London, Kensington and Chelsea, and Westminster, are running at their lowest for a decade, with average Westminster rents running at £2,259 pcm – down from £2,617 pcm in February last year
By contrast, UK rents outside of London are up 3% on the year, signalling the highest level of growth in four and half years
Rents are rising fastest in the North East (+5.5%) and the South West (+5.3%) yoy – the strongest rates of growth in a decade in these regions amid increased demand and constrained supply
Rental performance outside of London is being driven by a 59% uptick in demand for rental properties in the 28 days to the end of April, compared to the average demand recorded during the same month in the more ‘normal’ markets of 2017 -19
One year on since the housing market reopened and the Covid-led decline in rental demand for city centre housing is starting to bounce back, as the UK emerges from lockdown and affordability for renters improves.
These are the latest findings fromZoopla, the UK’s leading property portal, in its quarterly Rental Market Report:
City centre rental markets finally revived
The impact of Covid was felt most acutely in the city centre rental markets of the UK’s major regional cities. Central Edinburgh, Leeds, Manchester and London were at the forefront of the rental slowdown, as offices remained closed and an extended hiatus in tourism took hold.
Stock moving over from short-term lets into the rental market, and more rental stock coming back to the market amid easing demand, led to a softening in rents in city centres, which are still down by 0.7% in Leeds, -1.1% in central Manchester, -3.2% in central Edinburgh and -9.9% in inner London (see figure 1).
However, the city centre downturn is starting to reverse as the economy opens up, workers start to return to their offices, leisure activities restart, and renters return in search of a rental bargain and restoration of their social life.
Renter demand is up 26% in central Edinburgh, 12% in central Leeds, 7% in inner London and 5% in central Manchester in the month since Easter – and is starting to absorb the supply surplus that characterised the market over the past year.
Figure 1: Rental growth in inner and outer cities in March 2021
Source: Zoopla Research
London’s rental affordability reaches ten year high
Rental declines in London bottomed out in February of this year, down -10% year on year, with overall London rents now running at -9.4%. Average monthly rents are now at the same level as they were in December 2013.
The fall in rents in London over the past year has resulted in rents being at their most affordable for ten years. Average rents now account for 42% of an average single-earner income in London, down from 49% in March 2020, and a peak of 53% in Q4 2016
Average rents in the City of London, Kensington and Chelsea, and Westminster, are running at their lowest for a decade, with the average monthly rent in Westminster at £2,259 – down from a high of £2,617 in February last year.
Many of London’s renters are looking to future-proof current rental affordability, locking in cost savings for as long as possible, with agents reporting an increased number of longer-than-average tenancies (in excess of 12 months) being agreed.
Regional rents rising 3% year on year – but affordability remains unchanged
The rental market outside of London paints a starkly different picture, with rents rising at 3% year on year, signalling the highest level of growth in four and half years (see figure 2).
Despite rent rises, average affordability remains broadly unchanged as wages rebound from the dip recorded last summer, keeping pace with rental growth.
Rents are rising fastest in the North East (+5.5%) and the South West (+5.3%) year on year – the strongest rate of growth in a decade in these regions amid increased demand and constrained supply. However, the North East remains one of the most affordable regions in the country, with average rents absorbing 21% of the income of the average single earner (pre-pandemic, compared to the UK average of 32%.
Northern towns of Wigan and Barnsley are seeing some of the highest rental growth in the country, at 8%, with Rochdale at 7.8%; this outperforms average annual rental growth in these towns of around 1.5% between 2011 and 2019 by some margin.
Current rental performance is being driven by a 59% uptick in demand for rental properties in the 28 days to the end of April, compared to the average demand recorded across the ‘normal’ markets of 2017 -19. In the first quarter of the year, demand for rental property outside of London was 32% higher than the same period last year.
Figure 2
The supply challenge
The supply of rental properties in most markets is failing to keep up with demand, and the new supply of property coming to the market outside of London is 5% lower than in Q1 last year.
Supply constraints are being driven by a multitude of factors. Firstly, many renters were unable or reluctant to exit the rental market and buy a property during the pandemic, limiting the flow of renters out of the sector, and absorbing more supply. At the same time, investment into the private rental market, which is predominantly made up of independent landlords, has not recovered to 2015 levels, before the additional 3% stamp duty levy was introduced for investors.
The number of properties purchased using a buy-to-let mortgage was 45% lower in 2020 than in 2015, and the number of homes in the private rented sector has fallen slightly since 2016 as landlords rationalise their portfolios in the face of tax changes and additional regulation.
Private outdoor space remains top priority for renters
Increased demand for private outdoor space has characterised renter behaviour throughout lockdown, but even as we emerge from pandemic restrictions, it remains a priority.
The proportion of renters searching for rental properties with gardens has doubled since the pre-pandemic period last year. The good news for renters is that nearly half of properties available to rent currently have a garden or access to a shared garden, and the number of these properties available to rent has risen during Q1 to levels seen last summer.
David Ross, Managing Director, Hometrack, comments: ““Rental demand will continue to rise in city centres as offices start to re-open and this, coupled with increased affordability levels in many cases, will start to counter the negative pressure on rents seen over the last 12 months.
“In London, where rents are down 9.4% on the year, a modest reversal in rental declines has begun, but it will be a slow build back to pre-pandemic levels in inner London.
“The recovery will be uneven and we expect new or recently refurbished properties to attract higher levels of demand in H2.”
Tenants and private sector landlords facing financial difficulties caused by the pandemic have more time to access support after two loan schemes were extended.
The Tenant Hardship Loan Fund and the Private Rent Sector Landlord (non-business) COVID-19 Loan Scheme, both of which offer interest-free loans, will continue to receive applications beyond the original deadline of 31 March 2021.
It comes after Housing Minister Kevin Stewart extended temporary regulations banning the enforcement of eviction orders in the private and social rented sectors, giving further safeguards to tenants during the Coronavirus (COVID-19) crisis.
Mr Stewart said: “Throughout this pandemic our focus has been on enabling people to stay safe in their homes while the lockdown restrictions needed to suppress the virus are in place.
“These loan schemes have provided vital support as part of our broader effort to help those facing financial hardship as a result of COVID-19. For the majority of tenants facing financial difficulties and arrears the best means of support continues to be regular non-repayable support, for example through Universal Credit and Discretionary Housing Payments.
“However, for those who may fall through the gap and are unable to claim such support, these funds offer a helping hand to manage any rent issues that have arisen in the last few months as a result of COVID-19.
“We have been clear that no landlord should evict a tenant because they have suffered financial hardship due to the pandemic and that tenants in difficulty should engage with their landlord and seek advice on the options open to them.”
