25/11/2010 - Tenants expecting rent increases
The number of properties in the rental sector is not keeping up with demand, causing 42 per cent of people who rent to expect the cost of letting a home to rise over the next year, a survey has revealed.
Property website Rightmove.co.uk said that further rent hikes are anticipated by about four out of 10 renters, with rises of 10% or more expected by just over one in 10 people.
People's fears of costlier rents in the future comes despite research by LSL Property Services which reveals the cost of letting a home has already reached record highs. Rightmove said that according to some agents there have been rent rises of 10% in the past year.
Anecdotal evidence suggests there have also been cases of rent gazumping in some areas, as would-be tenants battle against each other to secure a place to live.
Demand for rental accommodation has increased in recent months as potential buyers have put plans to move on hold due to the problems in the mortgage market, or until the outlook for house prices becomes clearer.
Copyright © Press Association 2010
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