Debt worries may rise as southern renters face higher price hikes

The pressure of demand could push rents up more in the south than the north, it has been suggested.

Spokesman for landlord cover providers Let Insu…

The pressure of demand could push rents up more in the south than the north, it has been suggested.

Spokesman for landlord cover providers Let Insurance Services Malcolm Harrison noted the economic situation in recent years has altered the projections for the number of people renting from around 15 per cent in 2015 to 17 per cent.

“There is an increasing demand all the time and a shortage of property to buy and it is a very difficult mortgage situation for people with small deposits or first-time buyers,” he stated.

He suggested this is a “mirror” of the situation in the house buying market, where areas such as fashionable parts of London become too expensive to live in and people have to look elsewhere.

And it is already the case those living in the south will find rents more expensive, the expert observed, something which may add to the debts of those who already owe money and are faced with finding extra cash to pay their rents.

However, while the situation will vary between individual areas all across the country, Mr Harrison predicted the problem of greater demand and higher rents will be much more prominent in the south than the north.

The current level of demand for private rental property is such the average landlord has seen void periods shorten by 15 per cent compared with last year, a recent survey by LSL Property Services has found.

As a result of this increased demand, two thirds of landlords have only faced a void period of a fortnight.

The BBC has reported that many people trying to rent are getting caught up in bidding wars for the properties they want.

By Joe White

ADNFCR-622-ID-800276333-ADNFCR

Tell others:

shortlink