Tenants face £1bn rent increase in 2011
Thursday, 27 January 2011 12:01 PM
With almost half of Britain's private landlords planning to increase their rates by at least four per cent this year, the cost of renting a property in the UK could rise by as much as £1.1 billion in 2011.
According to research by money.co.uk, nearly two million households are each set to be around £550 worse off in the coming months as a result.
The news will come as a bitter blow to tenants already struggling against the costs of rising inflation and the recent VAT hike.
It could also make getting on the property ladder more difficult for first-time buyers who are renting while trying to save enough money to get a mortgage.
Hannah Maundrell, head of content at Money.co.uk, commented: "The mortgage market has still not really opened up, so many people who want to buy have no option but to keep renting.
"Unfortunately for them, simple supply and demand economics means that this pushes up the cost. I would advise anyone concerned about the increasing cost of rent to look at their contract and their rights as tenants. Rent rises are not necessarily a foregone conclusion," she added.
Maundrell went on to explain that, if a fixed-term tenancy agreement has been signed – usually for six or 12 months – landlords cannot increase their rental charges within that time without the tenant's consent.
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