18 Oct

Tenants ‘may struggle’ with rent rises

Tenants ‘may struggle’ with rent rises

Some tenants in the private rented sector could be struggling to pay landlords, according to a new report.

A survey from YouGov showed 16 per cent of renters could face financial pressure if there was a one per cent rise in their monthly payment, 26 per cent admitted they would not be able to pay if there was a three per cent increase and 42 per cent would not be able to cope with a five per cent rise.

“We all know that the rental market is highly competitive right now, and tenants’ budgets are already stretched to breaking point. Therefore, the prospect of any further rent rise is a real concern, and as our research shows, even a relatively minor increase in monthly rent payments could push tenants over the edge,” said Nick Marr, co-founder of the House Shop.

He added: “The fact that 16 per cent of renters said that they would struggle to afford even a one per cent increase in monthly rent is especially worrying as this could equate to as little as £7.79 extra per month based on average UK rents.”

It is expected that rents are set to rise over the next 12 months because of recent changes in tax legislation that could push up costs for UK landlords. However, this research could cause financial pressures for tenants and led to rent arrear problems for buy-to-let investors.ADNFCR-1222-ID-801826891-ADNFCR

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