Rent increases expected by more than half of tenants
More than half of tenants in London and Scotland expect their rents to increase in the coming year, new research by credit reference agency Equifax has found.
The figures, based on a survey of 2,136 adults, show that 52 per cent of renters living in the capital and 55 per cent of those in Scotland anticipate a hike in their accommodation costs.
And more than a third in all other English regions also foresee increases.
Lisa Hardstaff, credit information expert at Equifax, said: “It is not uncommon to feel anxious or concerned about finances when heading into a new year.
“The fact that so many renters are concerned about their finances if their rental payments were to increase shows that it is now more important than ever for them to stay in control of their finances.
“The concern is, however, not just limited to renters.
“Nearly a third of all individuals said that they are concerned about being able to afford all of their financial commitments, including rent, mortgage payments and utility bills, over the next year.
“Planning is vital for individuals to stay in control of their finances.”
With the lettings fee ban set to be introduced sometime this year in England, some agents say they will have to pass costs on to landlords, and it is expected that rents will increase as a result.
Following the 2015 Budget’s launch of the attack on the private rented sector by then Chancellor George Osborne, some landlords have scheduled small annual increases on the rents they charge to help mitigate the effect on their businesses and protect their livelihoods.
The new data also reveals the growing gap in confidence between tenants and mortgage holders, with 42 per cent of renters in all regions saying they would not be able to afford any increase in monthly rental repayments, compared to just 11 per cent of mortgage holders.