The cost-of-living is affecting everyone, including landlords. However, quite a few renters are finding the raise in gas and electric prices as well as rent and everyday living hard and we don’t blame them, life suddenly got a lot more difficult to navigate but if you are a renter, there are some things you can do to combat the current cost-of-living.
Thought of moving into a HMO?
Are you a single renter? Are you finding it hard with the rising cost of rent, gas and electric and even your groceries?
Why not combat the cost-of-living by moving into an affordable shared house?
An analysis conducted by Platinum Property Partners revealed that renting a high-quality room in an HMO is more than 50% cheaper compared to single tenancy letting.
Renting a room vs 1-bed flat could save tenants at least £3,660 a year
The average cost to rent a one-bedroom flat is now £708 per month
Average bills on minimum usage for this property size is an additional £305 per month
In comparison, tenants pay an average monthly room rent of £606, bills included
HMOs generate landlords up to four times the rental income
As the demand for single let properties soars the number of single let properties diminishes, however, this now means that the demand for HMO accommodation is likely to soar.
Figures
According to an article in City AM, tenants are spending 66% of their wage on rent and with the recent rise in energy costs, ‘bills included’ has become the most searched for term when potential tenants are looking for their next property.
Utilities, council tax, TV licence and broadband. All these costs add up when renting. Figures show from Zoopla that renting a room is £50% cheaper meaning there’s savings of more than £305 per month when moving into a HMO.
According to the latest figures from SpareRoom, HMO tenants spent an average of just £606 a month renting a room including bills.
Region | Median month rent, 1 bed, no bills | Median month red, 1 bed + bills | Average room rents, inclusive of bills | % increase |
London | £1,651 | £1956 | £650+ | 200%+ |
South East | £875 | £1,180 | £600-£649 | 97%+ |
East of England | £800 | £1,105 | £550 - £599 | 101%+ |
South West | £730 | £1,035 | £550-£599 | 88%+ |
Wales | £625 | £930 | £450-£499 | 106%+ |
North West | £600 | £905 | £450-£499 | 101%+ |
Yorkshire & The Humber | £550 | £855 | £450-£499 | 90%+ |
West Midlands | £550 | £855 | £450-£499 | 90%+ |
Scotland | £550 | £855 | £500-£549 | 90%+ |
East Midlands | £550 | £855 | £450-£499 | 90%+ |
Northern Ireland | £523 | £828 | £400-£499 | 107%+ |
North East | £495 | £800 | £400-£499 | 100%+ |
Add in Rightmove’s forecast of an 8% rise in rents by the end of 2022, and the search is on for budget friendly rental accommodation.
landlords and tenants have peace of mind
The ‘cost of living crisis’: it’s a phrase many of us have become accustomed to. We know bills are inevitable; they’re going up and it’s becoming more expensive to heat our homes, shop at the supermarket and fill up our cars.
Rental costs are rising at a rapid rate and it’s worrying, especially when you look at figures from ONS less than 2 years ago. At the end of 2020 financial year, the ONS found an average household in England could expect to spend 23% of their earnings on private rent
Fast forward to February 2022, and agent Benham & Reeves says renters in England are spending 66% of their wage on rent.
A room in an HMO, however, offers tenants a fixed monthly bill with substantial savings, allowing tenants to manage their finances more effectively.
Comments