Landlords will no doubt be accused of taking advantage but personally I can see no blame for some landlords trying to recoup their losses after a very tough few years. Figures indicate that in most parts of England rental prices have risen.
But before people start jumping up and down it is timely to remember that rental prices had fallen significantly recently and this could be considered a re-adjustment to normality.
The increase is due, as it tends to be to demand. With the banks refusing many first time buyers funding and reluctantly landlords finally having sold up and got out, the increase in the number of people wanting to rent is significant.
David Brown, commercial director of LSL Property Services, had this to say this week.
“Rents are jumping up as more and more potential home buyers opt to rent. People are wary of a crash in house prices and concerned over the effect of government cuts on their own ability to meet long-term financial commitments. Additionally, many can’t get a mortgage at an affordable rate. Furthermore, the huge number of reluctant landlords we saw renting out property last year have now had the opportunity to bank their gains and sell up. That’s cut into the supply of rental accommodation.”
As usual things are very regional for landlords though. If you are in London or the South you will have seen an average rise of 3%. The other end of the spectrum is nowhere near as rosy with average 1% drops in Wales and The Midlands.
