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Portsmouth Rents Rise

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Across the country the cost of a single room has jumped significantly – Portsmouth has seen a below average 12% increase with median rents rising to £576 per month. We predicted Additional Licensing would be the final straw after tax changes, mortgage increases and utility bills which would drive small HMOs out of the market, leaving them to be replaced by the much more expensive 'Super HMOs' and student halls.  Sadly, this does appear to be the case.

The national average jumped 17% in the 2nd quarter to over £700 per month – so there is no doubt of the direction of travel locally.  

Good News For Some

The good news for Portsmouth is that we are still one of the cheapest places to be a student in the country which bodes well for the University and those few local landlords left in this sector.

Student halls are also reaping the benefits of the shortage of properties – having rented a higher proportion of rooms than usual for this time of year even after increasing rents by 7%: (Remember, their rooms were significantly more expensive than the average room – so whilst the percentage increase is lower than others quoted here, the absolute increase is still very large).

PBSA 'can't keep up with demand' as HMO student landlords leave sector | Student Landlord Guides UK | AFS (accommodationforstudents.com)

The bad news, is that single room accommodation is the lowest rung of the housing ladder – so those unable to afford anything else may no longer be able to afford a single room; exacerbated by local authorities forcing the 'really cheap' homes out of the market in their constant striving for more space and higher standards.

Also, as we raise the 'lowest rung' it has a knock on effect on everything above it – so rents and house prices will rise accordingly (though less so house prices due to the deflationary impact of mortgage rates). Also, the cost to local authorities of housing the homeless increases as a result of the increased need for support.

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About the author

Martin Silman

Martin began his landlord journey 18 years ago, while working in an international role for a global telecommunications company. Since retiring he has extended his portfolio, which he manages with his wife, but has always focussed on the ‘small student HMO’ sector preferring to offer homes in the community for small groups to the more common ‘pack them in and take the money’ mentality. He has chaired the PDPLA for the past 9 years and has overseen the Associations transition from small local self-help group to a much larger and more professional institution which is recognised and listened to nationally. Alongside his PDPLA role, he also has leadership roles in a number of other local organisations – bringing his unique perspective, driving for change and increased use of technology while respecting the history that brought us here.

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