Being debt free could help as rents rise

The burden faced by many of having debts could have a knock-on effect when it comes to affording other things at a time of inflation and a new survey has shown one of these is the cost of private renting.

A new poll of members by the Royal Institution of Chartered Surveyors (Rics) has revealed the level of demand for rented accommodation is at its highest recorded in the 12 years of the survey.

It revealed 25 per cent more surveyors saw demand rise in the past quarter than fall, while 34 per cent more saw rents increase than dip.

While the latter figure is down from the 42 per cent majority seen in the previous survey, it still means the cost of letting is increasing for many.

Those who are able to go from owing large amounts of money to being debt free may find it is much easier to find the funds to afford such costs.

Commenting on the situation, Rics spokesperson James Scott-Lee explained that there is a good reason for the trend.

He said: “The combination of strong tenant demand and a limited stock of good quality properties on offer is pushing rents ever higher across much of the country.”

And with mortgage finance still difficult for first-time buyers to access, the trend will continue, he predicted.

Such a situation means that those who are able to get on the property ladder are in fact paying less on their mortgages each month than people who rent.

This was shown by a Halifax survey published this week, which noted the typical monthly mortgage payment is £567, £110 less than the average rent.

Posted by Paul Thacker