In recent times, it is positive to see a greater level of assistance being offered to first-time buyers. Buying a home can be a daunting challenge, but it is also an expensive activity. The mortgage is the main issue for most buyers, but the size of deposit required to buy a house presents a sizable challenge, even in Midhurst. This is why steps like the removal of stamp duty for first-time buyers is a move that should be acknowledged and praised.
However, it would be wrong to think that only first-time buyers need assistance. The cost of renting property is also expensive, and there are many up-front costs associated with this activity. Some of the up-front costs in renting include:
- The first month’s rent in advance
- A deposit, sometimes up to two months’ worth of rent
- Letting fees
- Removal fees
According to figures provided the home.co.uk website, the average rent in Midhurst, at the end of January 2018, stands at £994 per calendar month. The average rent for a one-bedroom property for the same time-frame is listed as £676 per month and for a two-bedroom property, the average rent is £947 per calendar month.
The cost of moving in Midhurst can be prohibitive
A tenant moving into a two-bedroom property in Midhurst, and being asked to provide two months’ worth of rent as a deposit, will easily find themselves paying more than £3,000 in up-front costs to move into property. This is a huge sum of money for one person or a household to find at short notice, and you can see why this acts as a barrier to moving into rented accommodation.
You should also see that the cost of moving property on a regular basis can be very expensive, even if the tenant maintains the condition of the house and receives the majority, or all, of their deposit back. Studies find that the average letting fee is around £220 but there has been plenty of anecdotal evidence to suggest that letting fees of more than £1,000 have been applied. Returning to the Midhurst figures, the up-front costs of renting a two-bedroom property could rise to more than £4,000 in this situation.
Changes are coming in the rental market
Therefore, it is positive to hear the Government is looking to make changes in this area of the rental market. It has been announced that letting fees will be banned. There is also a motion to limit how much of a deposit can be asked for, with current suggestions saying that a limit of six weeks’ will be applied. This may still lead to a high figure, but it is lower than that two months’ rent, and it will provide a maximum figure for tenants to consider and use in their budget.
These steps are positive for tenants, but sadly, it doesn’t look as though they will be introduced this year. It is believed the Government will bring these measures in together, with spring of 2019 the likely time-frame. This means people looking to move in 2018 will not benefit, but in the future, there will be financial assistance for tenants.
If you are looking to rent in Midhurst, come and speak to the local letting specialists. At Williams of Petersfield, we provide expert guidance and advice, and we look forward to helping you soon.