More tenants beginning to resist rent rises

Rental prices are still rising, but at a slower rate, as some tenants began to resist the upwards impetus.

Rental prices continued to increase across the UK, albeit at the slowest pace in two years, in the three months to January, the Royal Institution of Chartered Surveyors has reported.

It says the market may be beginning to level out, with prospective tenants less willing to pay increasing rents.

With rental growth beginning to slow in many areas of the country and a recent upturn seen in prospective buyers of property, the RICS says an increased number of landlords are looking to sell at the end of a tenancy agreement.  

Looking ahead, the RICS members which handle residential lettings expect growth in rental values to continue to slow.
Michael Newey, RICS spokesperson, said: “With many potential first-time buyers having been forced into rented accommodation due to problems with obtaining affordable mortgage finance, rental prices have grown quickly across much of the country in recent times. However, it seems that tenants may be becoming less willing to meet increasing rental values.
“While still growing, demand from potential tenants is also beginning to slow.

“With a recent upturn in buyers entering the sales market prior to the expiry of the Stamp Duty holiday in March, it seems that those who are in a position to get a foot on the property ladder may have chosen now to do so.”