Rising rents price tenants out

About 40% more surveyors reported a rise in rents than those who saw a fall in the three months to the end of April, says Rics Growing numbers of tenants are finding themselves priced out of the market as rents continue to be pushed up by strong demand and a shortage of supply, latest research shows. About 42% more surveyors reported a rise in rents than those who saw a fall during the three months to the end of April – up from 40% during the previous quarter, according to the Royal Institution of Chartered Surveyors (Rics). Although rents increased across the whole of Great Britain, London and the south-east continued to see the most notable rises. Surveyors said rents in some areas had risen so sharply that previously affordable homes were now out of reach for many people, leaving growing numbers of tenants priced out. Estate agents Cluttons said tenants in central London should brace themselves for increases of between 8% and 10% following record increases of 19.1% in 2010. It added that existing tenants who wish to renew their contracts are facing smaller rises in the region of 4%, as landlords concerned about the general economic outlook opt to retain quality tenants rather than risk void periods. But the high cost of being a tenant was failing to deter people from renting, with many having no alternative due to the large deposits currently demanded by mortgage lenders. A balance of 35% of surveyors reported a rise in demand for rented accommodation during the three months to the end of April, the highest level for more than two years. The proportion reporting an increase in demand was also significantly higher than the 6% who said they had received a rise in new instructions from landlords during the same period, suggesting the mismatch between supply and demand would get worse. Rics said it was the first time the overall level of instructions had increased since April 2009, but this rise was doing little to help the situation as tenants were staying longer in properties than they previously would have. However, there was also a fall in the number of landlords reducing the size of their portfolios, with 2.8% selling a property during the three months, down from 4% during the previous three-month period. Rics spokesman James Scott-Lee said: “Although we are beginning to see more mortgages aimed at first-time buyers , many potential homeowners are still restricted from getting a foot on the property ladder, leading to increased demand in an already oversubscribed rental market. “There has been a small uplift in supply, but the imbalance between demand and availability can only mean rents will continue to rise.” Looking ahead, 33% more surveyors were predicting further rent rises than those who thought rents would fall, with expectations that the cost of being a tenant would increase highest in London, followed by the Midlands, the south-east and the north. Renting property Property First-time buyers Housing market Housing guardian.co.uk

Posted by on June 9, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.