Tenants priced out of the housing market as rents rise

[AtW]

The RICS said that 42 per cent more surveyors reported rents rose rather than fell in the three months to April. It added that rents in some areas have now risen so sharply that previously affordable homes are now unattainable to many, as an increasing number of renters are priced out of the market.

The organisation said that the strict lending criteria is forcing many people to rent rather than buy. As a result, surveyors report that many people have little choice but to rent. 35 per cent more respondents reported demand rose rather than fell – the highest level for over two years.

Despite an upturn in new instructions, supply to the market still remains unable to keep up with demand. Tenants are staying longer, resulting in less availability, while fewer landlords are selling their properties at the end of a tenancy. Just 2.8 per cent of landlords sold property in the three months to April (down from 4 per cent).

More doom from ze source: Tenants priced out of the housing market as rents rise - Telegraph

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AtW's comment:

[TimberWolf]

It's not as if priced out people can move to tent city in the UK either. The only option seems to be to live in a van.

[MarillionFan]

It's not as if priced out people can move to tent city in the UK either. The only option seems to be to live in a van.

Or on a sofa.

[scooterscot]

I should really put the rent up for my 2 bed, currently 975 but I understand others in the area a charing 1150 to 1250

[OwlHoot]

The RICS said that 42 per cent more surveyors reported rents rose rather than fell in the three months to April. It added that rents in some areas have now risen so sharply that previously affordable homes are now unattainable to many, as an increasing number of renters are priced out of the market.

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AtW's comment:

Told you so.

(My mortgage, for a one-bedroom flat in South Ken, is £500 a month BTW)

[norrahe]

Told you so.

(My mortgage, for a one-bedroom flat in South Ken, is £500 a month BTW)

Which you could easily rent out for 2k a month without a problem in that area.

[AtW]

(My mortgage, for a one-bedroom flat in South Ken, is £500 a month BTW)

And what would it be when rates go back up to 5%?

[TimberWolf]

And what would it be when rates go back up to 5%?

Express.co.uk : Cheaper home loans to stay

[OwlHoot]

And what would it be when rates go back up to 5%?

Ooh, let's see, about £700 a month.

Boy, will I be in big trouble then!

[AtW]

Ooh, let's see, about £700 a month. Boy, will I be in big trouble then!

You should not be.

You are a living proof that rates need to go up and prudent home owners should not go bankrupt because of that.