Freelancers are being hit hard by devastating UK rent rises, as landlords sell up and tenants multiply. Here are some ways freelancers can make up for the rate hikes
According to the Office for National Statistics (ONS), rents in England and Wales have risen by an average of 9.7% and 11.3% respectively in the past year. This is making it harder for freelancers to afford to live and work and is putting pressure on them to increase their rates and pitch for higher-paying work.
The data also shows that the number of landlords selling up is increasing, while the number of tenants is multiplying. This is putting further pressure on the rental market and driving up rents.
Why are landlords increasing rates so much?
Tougher rules for landlords: Landlords are now facing tougher rules, such as higher taxes and stricter regulations. This is making it less attractive for people to invest in rental properties.
Rising mortgage costs: Mortgage costs have been rising steadily in recent months, making it more expensive for landlords to borrow money to invest in rental properties.
Increased demand for rental properties: The demand for rental properties is increasing, driven by factors such as more people renting later in life, more people living alone, and an increased desire for self-contained space after the pandemic.
Try speaking to their landlord about the possibility of a rent freeze, or looking for ways to reduce their other expenses.Sarah Coles, Hargreaves Lansdown
Where will rental rates likely rise and where will they not?
The ONS data also shows that rents are most likely to have risen in London (77%), and least likely in the North West (42%). However, those rents that did rise in the North West did so more than anywhere else – at an average of 12.3%.
The rise in rents is having a devastating impact on tenants, many of whom are struggling to make ends meet. It is also making it harder for people to save for a deposit and buy their own home.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “We’re seeing devastating rent rises, as more landlords sell up and tenants multiply. The rental market is getting squeezed on all sides.”
Coles added that there are a number of things that tenants can do to try to cope with the rising cost of rent, such as speaking to their landlord about the possibility of a rent freeze or looking for ways to reduce their other expenses.
She also urged the government to take action to help tenants, such as providing more financial support or building more affordable housing.
How can freelancers make up for rental price hikes?
There are a number of ways that freelancers can make up for the rise in rent costs. One option is to increase their rates. This may seem like a risky move, but it is important to remember that freelancers are in high demand, and many clients are willing to pay more for high-quality work. Another option is to pitch for higher-paying work. This may involve targeting new clients or industries or taking on more complex projects.
Freelancers can also save money by reducing their expenses. This may involve renegotiating their contracts with suppliers or finding cheaper ways to get things done. For example, freelancers can use free or low-cost tools and software, or network with other freelancers to share resources.
It is also important for freelancers to be aware of the government support that is available to them. For example, the Lifetime ISA offers a bonus of up to £1,000 per year to people who are saving for their first home.