Rental Price Rises slow as Tenants Rebel

09 March 2012 Categories: News

Rental Price Rises slow as Tenants Rebel

It’s a well-known fact that rental prices have risen dramatically over the last 3 or 4 years, and while still rising, the rate at which they are doing so is now slowing. The average rental increase for the three months prior to January proved to be the smallest recorded for over two years, and the main cause is thought to be tenant objection to the ever growing rents.

Although the demand for private rental property hasn’t become significantly reduced the number of tenants choosing not to pay the rental prices for the property they want and looking for alternative property further afield is definitely increasing. The number of tenants choosing to buy instead of rent has also increased in recent months because of the stamp duty holiday which is due to end later this month (March).

RICS spokesman, Michael Newey, commented on the apparent rebellion; “With many potential first-time buyers having been forced into rented accommodation due to problems with obtaining affordable mortgage finance, rental prices have grown quickly across much of the country in recent times. However, it seems that tenants may be becoming less willing to meet increasing rental values.”

Whether this new opposition will continue to the point where it starts to affect landlords remains to be seen but it could cause potential problems to those who need to achieve the highest rents possible to make their enterprise as a landlord financially worthwhile.