Buy to let tenants expect rents to keep on risingMake Text Bigger
>Private renters expect to hand over more money every month to their buy to let landlords as they continue to struggle to buy homes of their own.
Only 4% of tenants expect rents to fall, while more than half (54%) expect to pay more for their homes, according to research by online property portal Rightmove.
The web site says that more tenants expect their rents to rise now than ever – the survey started in January 2009.
The latest figure is around 25% up on tenant rent expectations in the previous quarter when only 42% predicted rents would go up.
One in three tenants believe rents will rise by up to 10%, but 16% are braced for a double-digit hike during the coming 12 months.
Rightmove said the private rental sector is “creaking under the strain” of too much demand as would-be homeowners stay renting for longer because they cannot move on to a home of their own.
This is made worse by less properties available to rent on the market – down 18% compared to a year ago.
Nearly three in five (58%) tenants said they would like to buy but cannot afford to do so, with 44% saying they can’t buy because lenders are demanding deposits they cannot afford.
Some renters opt to rent rather than buying because they may lose their job.
Miles Shipside, director of Rightmove, said: “Letting agents in many areas are reporting an insatiable demand, with prospective tenants coming from all backgrounds and requiring all types of property.
“Those traditional tenants that are leaving the family nest are increasingly being joined by those that can’t sell or get a mortgage to trade up, putting unprecedented pressure on the rental sector to provide homes to rent on most rungs of the property ladder. Such demand inevitably creates supply shortages and pushes up the cost of the rented roof over the tenant’s head.”
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