Rents continue to rise

Author: David Whittaker Posted on: 20 January 2012

The seasonal lull in demand impacted average rents towards the end of 2011 but demand will be robust over the first few months of 2012 which will help strengthen prices. However, the problem we may face later this year is rental affordability. Overall, rents have been on the rise for the last two years and there will come a point when average rents are simply too high for many people to afford.

We then face the danger of rising rental arrears and a surge in demand for affordable rental property – demand that current stock levels cannot satisfy. This is why it is vital that lenders and the government support property investors and landlords and make it easier for them to invest in Multi-Unit Freehold Blocks and Houses of Multiple Occupancy. These are the property types that will help ease the rental sector’s burden and avoid a situation where people are unable to buy but cannot afford to rent, the consequences of which would be very dire indeed.