Rightmove have released their forecasts for the private rental market for 2013.
The following is a summary report and their full report can also be downloaded from here.
Summary of the Rightmove Rental Forecast for 2013
- Rents to rise 2% in 2013, tempered by majority of landlords planning rent ‘freeze’
- 61% of existing landlords plan ‘rent freeze’ for 2013, the clearest indicator yet that landlords will opt for a lighter foot on the ‘rent rise accelerator’ next year
- Just one in four (25%) of existing landlords intend to put rents up in 2013, and of those only around a third (35%) plan a raise of more than 5% – the result is likely to see the annual rate of growth ease to circa 2%
- Landlords becoming increasingly mindful of tenants’ ability to meet rising rental demands, heightening risk of arrears and voids:
- More than a fifth (22%) of current tenants pays 50% or more of their take-home pay on rent as ‘affordability ceiling’ comes into view
- Rental headroom reduced as average rents have increased by 13.6% since 2009 as demand continues to outstrip supply
- Composition of UK landlords includes many who are perhaps more sympathetic to tenants’ rental price worries – one in four is an ‘accidental landlord’
- Pressure on rental demand set to remain as many tenants unable to escape rental trap – 59% would like to buy but can’t afford to do so, the highest Rightmove has ever recorded
To download the full report simply fill in the boxes below and press submit. You should then receive an email from us within 5 minutes.