Since the resurgence of world economies from the ashes of the global economic recession a few weeks ago, there seems to be a steady increase in the price of almost everything. January 2011 would be remembered for many years to come as “the month that commenced the increase in food, fuel and other sundry prices long after the recession.
Rent is not left out in this ugly phenomenon. UK landlords have begun raising rents on their properties since 2010 and experts predict that this trend would gain momentum in 2011 – and possibly beyond if something urgent is not done.
You would agree with me that the “Liberal-Democratic-Conservative” marriage in the centre of governance have – to a large extent, added more burden to the life of the ordinary UK citizen. One of the most striking examples is the massive hike in the fees university students are required to pay.
In October 2010, rent monitor website: “This is Money” reported that rents had hit an all time high, with the average tenant paying £689 a month. And that average is far outstripped in London, where average rent is £972.
A recent poll by buy-to-let specialist, Paragon Group has revealed that 41% of the landlords it polled are planning to increase rents during the next 12 months, while only 4 percent are considering lowering rent in 2011. Nigel Terrington, chief executive of Paragon, which polled 182 landlords, said: ‘Landlords are in a strong position. Tenant demand has risen faster than supply during 2010 and that is expected to continue well into 2011.’
So, is it the fluctuation in the demand-supply curve that is responsible for this, or the global trend, or even the government’s insensitivity to the plight of the people it has promised to serve? Your guess is as good as mine considering the steady rise of rent over the years.
The implication of this for tenants is very obvious. There is unfortunately, no increase in wages in all sectors in the UK – at least for now. With the general increase in the cost of fuel, education, food, and now rent, the common man on the street should better brace up for tough times ahead.
