The House Shop warns of ‘ticking time bomb’ in rental sector
Almost half of private tenants wouldn’t be able to afford up to a 5% increase in rent, research has revealed.
A YouGov poll by classifieds site The House Shop found that 42% of private renters would be unable to cope with even the smallest rise despite many landlords considering increases due to extra stamp duty charges and the end of mortgage interest relief.
More than 1,000 renters and mortgage holders were asked to estimate the minimum percentage that their monthly mortgage or rent payments would have to increase before they became unaffordable.
Even an increase of up to 1% would be unaffordable for 16% of private tenants, while just 3% of home owners said this would be a struggle.
Mortgage holders were more able to absorb larger increases in monthly payments, with 24% saying monthly mortgage payments would have to increase by more than 20% before they became unaffordable, compared to just 7% of private tenants who said the same of their monthly rent payments.
Nick Marr, co-founder of The House Shop, said: “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.
“This demonstrates that there is a ticking time bomb in the private rental sector, and with the number of people renting from private landlords already at a 30-year high we could quickly find ourselves in a very precarious position with wide-ranging consequences for both tenants and landlords up and down the country.”
See details of our Guaranteed Rent Scheme here
Central Housing Group’s ‘Guaranteed Rent’ Scheme protects landlords from the substantial risk of rent arrears. Our landlords are paid an agreed monthly Guaranteed Rent for the duration of the term of their contract regardless of their tenants’ financial or employment circumstances and regardless of whether their property is occupied or not. Consequently our landlords have complete peace of mind knowing they will not be impacted at all by the risk of incurring rent arrears or rent loss during void periods, in contrast to those landlords that let their properties in the private rented sector, with all the attendant risks and exposure of doing so.
Landlords – please carefully consider the risks you run by choosing to let your property privately when, instead, you can let your property on our ‘Guaranteed Rent’ Scheme and protect yourself from any rental loss exposure.
As a contracted supplier to many of our Council clients, our accounts are audited annually and are subject to regular scrutiny by our Council clients – landlords can therefore have complete confidence in our ability to ensure they will receive their agreed rent on a Guaranteed basis for the duration of the term of their contract with us.
If you are interested in finding our more about our ‘Guaranteed Rent’ Scheme, currently operating in north, east & west London, please call us today on 020 8447 1222.