Number of people renting set to increase

by Simon Ward on 08 December 2011  |  1 comment
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Estate agent predicts more people renting in 2012 but rental costs to stabilise.

One of the UK’s largest lettings agents, haart, is forecasting a big rise in the number of people renting over the next 12 months.

Haart says it has seen a 10% increase in the number of people registering with its branches in the last three months. And it expects that increase to continue into the new year.

It also said that, in some areas, there are up to 10 applicants for every home that comes onto the market. In September, estate agents LSL Property Service said rents were rising by an average of £50 a month.

However, haart is forecasting only modest rises in rents next year, as the market settles down, providing some much-needed relief for tenants.

A new report from the Royal Institute of Chartered Surveyors says that rental increases are already slowing. And it says that more family homes are coming onto the rental market after unsuccessful attempts to sell them.

Estate agent website Rightmove’s most recent Consumer Rental Forecast found that 55% of people renting are so-called ‘trapped renters’. It defines this group as people who want to get on the property ladder but cannot afford to.

But other commentators say that many people are now making a ‘lifestyle choice’ to rent rather than buy as it offers more flexibility.

More: How to be the perfect tenant | Buy-to-let investors are being treated unfairly

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