As many people will already know getting a mortgage in the current financial climate has become increasingly difficult, with many lenders currently because very cautious about who they lend to and how much they are prepared to lend. As a result of this the demand for rented accommodation from private landlords has been soaring, with many people fighting over each property that comes up for rent.
However, it has now been revealed that the average rents that are being charged on properties have reached record levels, with the amount having reached an average of £692 per month in April. This is 0.8 percent higher than it was for the previous month and around 4.4 percent higher than the same time last year. Landlords are now charging an average of £30 a month extra on rents in the current climate, putting additional financial pressure on tenants who have no choice but to rent because of the mortgage situation.
London and the South East of England saw the biggest increases in rents. Officials have said that the warm weather and bank holidays weekends in April resulted in a rising number of people looking around for rented accommodation, which has been driving prices up further. The cost of renting has now risen to its same record level that was reached in November of last year.
Tags: financial, mortgage, climate, advantage, April, landlords, BankThe number of missed and late payments in April also increased, with one official stating: “The final bank holiday of the month delayed many rental payments, but on top of this, thousands of tenants took advantage of the opportunity and booked holidays, which has impacted on the timely payment of rent. Nevertheless, despite the short-term factors, landlords need to remain especially vigilant over the medium-term. We are yet to see the true picture emerge from public sector spending cuts, and changing employment situations will hamper many tenants’ ability to meet their monthly rent cheque on time.”