More than half of tenants in London and Scotland are anticipating rent increases this year.
Research by credit reference agency Equifax found 52% of those living in the capital and 55% of those in Scotland expected their rents to be hiked.
Similarly, more than a third in all other English regions anticipated increases.
The figures, based on a sample of 2,136 adults, make interesting reading ahead of the lettings fee ban set to be introduced some time this year in England, with some agents expecting to have to pass costs on to landlords, with rents to increase as a result.
The poll did not, however, ask respondents why they believed rents will rise.
Overall, 42% of tenants in all regions said they would not be able to afford any increase in monthly rental repayments, compared to just 11% of mortgage holders.
Lisa Hardstaff, credit information expert at Equifax, said: “It is not uncommon to feel anxious or concerned about finances when heading into a new year.
“The fact that so many renters are concerned about their finances if their rental payments were to increase shows that it is now more important than ever for them to stay in control of their finances.
“The concern is, however, not just limited to renters. Nearly a third of all individuals said that they are concerned about being able to afford all of their financial commitments, including rent, mortgage payments and utility bills, over the next year. Planning is vital for individuals to stay in control of their finances.”
Comments (2)
I never used to increase rents on sitting tenants. That has all changed now due to the war on landlords and especially because of Section 24. I have now scheduled in rent increases for every April – often not by much – for example a rent of £395 might go to £410, then the next year to £425 etc. The tenants certainly had a shock when this first happened following the 2015 Budget’s launch of the attack on us by George Osborne. I explained it was because of the bizarre policy of taxing us on our business but not allowing us to offset the main cost of our business – finance interest. Some rents which were stuck on £320 for maybe 8 years have gone up to £335 and will soon go up to £350 (similar ones in the same street were already £395 last time I looked). We are not ‘greedy landlords’ and with low interest rates I had no problem keeping the rents low, but we now have to protect our businesses and livelihoods and also in effect the roofs over our tenants’ heads. I don’t want to sound like Marie Antoinette, but I think an increase per month of £10-£15 shouldn’t break the bank for most.
You sound a lot more generous than George Osbourne, and the Governments of the day. There is nothing for nothing in this world and driving up standards (which I support) and driving up administrative nonsense (such as right to rent which I do not support) and some of shelter’s policies costs; and those costs inevitably will be passed down the line to the end user, the hard pushed tenant. We all pay a significant lump more on our energy bills so insulation grants can be paid – whilst understandable I guess it is incredibly inefficient as all the hangers on make their share in administration costs.