Market Research Finds Landlords Pleased but Tenants to Suffer Rise in Rental Fees

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29th August 2012 16:12 - Housing

Due to weak mortgage lending levels for first-time buyers and the generally poor economy preventing many Britons from being able to afford to get onto the property ladder, there has been a major increase in rental demand – this is cause for celebration amongst landlords but consternation amongst tenants a new survey has found.

The study by lettings network LSL Property Services has uncovered a positive mood amongst landlords, while cash strapped tenants can expect their rental fees to soar by up to 4.5% over the coming year.

Four in 10 landlords surveyed said they plan to increase their rents over the next 12 months by 4.5% on average, while only one in 100 plan to reduce them.

The lettings network also found that rents in England and Wales reached a new average high of £725 per month in July.

Nevertheless, despite the fact that two thirds of landlords believe tenant demand for rental property will increase over the next year, approximately six out of 10 claimed they expect to leave their rent charges broadly unchanged for the most part.

Director of LSL Property Services, David Newnes, commented: "As long as lending to first-time buyers remains in the doldrums, and new house building remains subdued, we won't see demand for rental accommodation tail off. In these conditions, while affordability may increasingly come into play as landlords set rents, they are far more likely to continue to rise than tumble in the coming 12 months."

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