9:08 AM, 3rd November 2011, About 10 years ago
Rents in London have soared by more than a quarter in two years, according to a firm of leading estate agents.
In a snapshot of the private home rental scene in the capital, Knight Frank revealed rents have increased by 27% since 2009 while tenants are moving in to more homes with fewer coming back to the market.
The firm reckons rents are almost back to those at the peak of the market before the credit crisis.
Gary Hall, partner at the property agency and consultancy said: “It’s looking healthy as a landlord. If the conditions continue, the rental prices will continue to head upwards.”
Buy to let is expected to gain from the bleak financial future of the under 40s, they face more of a struggle to make ends meet than their parents as they are likely to have higher debts, less assets and falling incomes.
Meanwhile, debt charity the Consumer Credit Counselling Service (CCCS) found more than a million households in the 18-39 age group are already in financial difficulties and fears another 893,000 are at risk.
The charity says 75% of people aged 18 to 39 have unsecured debts, compared with 60% in the 40 to 54 age group.
A report from the charity, Debt and the Generations, explains a rise in average house prices from 2.3 times to nearly 5.5 times gross annual earnings has dashed the hopes of many of buying their own home.
Younger adults who can afford to buy have extra mortgage debt that has switched wealth to those further up the housing ladder.
CCCS chairman Wilf Stevenson said: “Younger generations face a worrying future. Higher debts and fewer assets will put many in a precarious financial position, and these trends threaten to impact considerably on quality of life in later years.”
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