Residential street becoming ‘ghost road’ due to rent hike exodus

A street in Liverpool is in danger of becoming a “ghost road” because rent increases are forcing residents to move out.

Various reports highlight the predicament of rental tenants in Galingale Road in Norris Green, with an increasing number of them opting to relocate after being hit with rent hikes of more than 36%, equating to £235 per month.

The reports named letting agency Allsop as the manager of a number of the street’s properties, and said residents had tried contacting the company to discuss options but were told it was no longer taking calls regarding renewals.

One of the cases highlighted in the reports was that of “Andy”, a 50-year-old construction worker who is moving back in with his 78-year-old mother after he was hit with a rent increase of £235 after six years in his home.

He told the Liverpool Echo: “When the letter came through I told them I couldn’t afford it and asked if they could reduce it to £700. They said the best they could do is £825 but that would lock me in for two years. I couldn’t afford that anyway with all our bills going up so I’m moving out.”

Another Galingale Road resident told the Liverpool Echo that the street is becoming a “ghost road” as neighbours around him move out. “We got told a couple of months ago about the rent increase,” he said. “We were told the rent would be going up from £680 to £850 and that this was non-negotiable.

“One of my neighbours has already moved out, another is going at the end of the month and another has just said they are moving out too. No one can afford to pay this. We have decided to go now too.”

Speaking to the Mail, a spokesperson for Allsop Lettings insisted that there was “significant interest” in new lettings at the development and that it is close to full occupancy.

“We have been in close dialogue with a number of residents of the Galingale Road development to offer new assured shorthold tenancies at rental prices in line with the market,” the spokesperson said. “We have recently agreed a good number of these renewals with existing tenants.

“To establish the market rent we follow a rent setting framework, which considers rents achieved at the same or similar properties via new lettings as well as evidence from nearby schemes. In every case we allow adequate time for consultation and to discuss options with the tenant. We will always work collaboratively with the residents to help them identify the most suitable solution for them.

“We maintain high standards in managing lease renewals in a fair and compliant manner and in keeping with a privately owned and professionally managed residential portfolio,” the spokesperson added.

 

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2 Comments

  1. Gloslet

    This piece doesn’t say when the rents were last reviewed. We have a number of landlords that haven’t previously reviewed rents during tenancy terms but are now doing so, partly because of increased interest rates, tax and compliance costs but mainly because they are terrified that the Government will introduce rent controls, limiting the amount that rents can be increased. If they don’t revert to market rents now, they may lose the opportunity to do so.

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  2. AcornsRNuts

    This appears to have been lifted from the Daily Mail website last week. Something isn’t right about this story. As a landlord I would prefer a rented property giving me an income to an empty one costing me money.

    A two minute search online failed to find any properties to rent in that road.

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