propertytalk Live! - Tenants forecasting rent rises outnumber those expecting falls by 13 to 1

propertytalk Live! - Tenants forecasting rent rises outnumber those expecting falls by 13 to 1

With housing needs continuing to grow and limited options to satisfy this demand, the majority of those at the sharp-end of the rented sector are predicting higher rents, Rightmove’s Consumer Confidence Survey reports.

In times of economic hardship one might expect landlords to come under pressure to reduce their rents, but in this quarter’s survey those tenants forecasting rents to be higher one year out outnumber those expecting to be paying less by 13 to 1.

Miles Shipside, director of Rightmove, says:

“Letting agents in many areas are reporting an insatiable demand, with prospective tenants coming from all backgrounds and requiring all types of property. Those traditional tenants that are leaving the family nest are increasingly being joined by those that can’t sell or get a mortgage to trade-up, putting unprecedented pressure on the rental sector of the housing market to provide homes to rent on most rungs of the property ladder.

"Such demand inevitably creates supply shortages and pushes up the cost of the rented roof over the tenant’s head. In spite of the country’s economic hardship, the desire or need for suitable accommodation is set to further test the elasticity of tenants’ purse strings”.