Rent rise forecast as private tenants reach 5-year high
posted by admin in Carpet CleaningAs house prices falter, rents look set to rise after a long period of stability. A new report puts the number of tenants wanting to rent privately at a five-year high and this increased demand could see rents go up next year.
The Association of Residential Letting Agents (Arla) says that demand has been pushed up by a number of factors, including the increase in immigration, more people living alone, and a weakening of the housing market. The South East has seen an acute shortage of rental properties. Demand has surged in central London, which Arla says has seen a 13-fold increase in demand for rental property over the past five years. Arla also says that 37 per cent of letting agents across the UK are warning of a shortage of properties to rent. That view is echoed by Judith Bulman, management consultant with Bulman Letting Agents in Carlisle. Bulmans rent out more than 250 properties in Cumbria and virtually all are currently occupied. Judith sees the influx of Eastern European immigrants to Cumbria and the slowing house market as the key factors.
“If it weren’t for the Eastern Europeans we would have been stuck with a lot of properties,†she told The Cumberland News. “They’ve turned out to be excellent tenants. And we’re seeing the effect of the slowdown in the property market. Some people who can’t afford their mortgage have already sold up and paid six months’ rent up front. Since Northern Rock, lenders are becoming stricter so some people are finding it even harder to get on the property ladder.
“Our properties are being taken up much more quickly now than a year or two ago and we are searching for more properties. I can’t see it slowing down.
“Rents had settled down. You had to be realistic on them. But I can see a small rise for the coming year.â€
Ian Potter, head of operations at Arla, said that the current demand for rented properties should come as no surprise. “Softening in the sales market is always a driver of further demand in the rental market. These latest figures confirm that the private rented sector will once again be the safety valve for a housing market worried by the current financial uncertainties and the softening of house prices.
The survey is based on responses from 517 letting offices.
Tags: anc, crease, european immigrant, grants, house price, housing market, lenders, lt, Operation, propertiesRelated posts
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