Tenants Brace themselves for Further Rent Increases

22 September 2012 Categories: News

Tenants Brace themselves for Further Rent Increases

Even though the latest HomeLet Rental Index shows the average monthly rent now stands at a record-breaking £808 it seems that tenants across the country are still bracing themselves for further rent increases over the next 12 months, says property website RightMove. Tenants in London and the South East are most pessimistic with 66% of London tenants and 62% of those in the South East admitting that they fully expect their current rents to increase further in the near future.

This outlook seems to stem from the knowledge that demand in the private rental sector far outstrips the current supply of quality properties, and that landlords can fully take advantage of the predicament many tenants find themselves in i.e. their struggle to secure a tenancy on a new property should they decide to move.

Director and housing market analyst at RightMove, Miles Shipside, commented on the findings of the recent website survey, saying “The view from the majority of tenants across the country is that rents are only likely to go one way, and that’s up,”

“London and the surrounding commuter belt of the South East have the greatest proportion of respondents predicting higher rents, suggesting that these markets are most at risk of ‘over-heating’ and most in need of further investment from investor-landlords.”