Rent increases caused by mortgage difficulties |
As mortgage lenders continue to be very picky about who they will lend to and how much they will lend, more and more people are resorting to renting to resolve their accommodation needs. With the best deals only available to those with 25%+ deposits, potential first time buyers, in particular, are finding it very difficult to get on to the ladder. There are also some who are deliberately waiting as property price continue to slowly fall.
Fewer people buying houses has consequently caused an increase in demand for rented properties, which has enabled landlords to increase rent levels. Rent has now increased for nine months in a row, with the average figure for October being £691.
Jeremy Lead, RICS spokesperson, said ?The lettings sector has become increasingly strong over the past nine months, in contrast to the housing market which continues to slow?. This situation is expected to continue for the next three months at least.