Renting set for another steep rise in 2012
Thursday, 8 December 2011 10:04 AM
Letting agent Haart is predicting another dramatic increase in the number of people renting in the UK in 2012.
The firm says the number of applicants registering at its branches has increased by 10 per cent over the last three months and it thinks this trend will continue over the next 12 months.
The increased demand has fed through to increased pressure on the availability of property with some branches seeing as many as 10 renters chasing every home.
And it's also reflected in an increase in enquiries from prospective landlords looking to invest in buy to let, especially with rental yields of between five per cent and 10 per cent achievable in some parts of the country.
But Haart does not think rents can climb much higher, given that in some areas they already account for 40 per cent of tenants' income.
Andrew Benn, managing director of Haart Residential Lettings, said more people were now prepared to make a lifestyle choice and rent.
"This isn't to say that they don't want to buy their own home. It is more that with the continued economic uncertainty, they are delaying that decision, and the associated long-term financial commitment of a mortgage, until there is greater certainty in the country."
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