Almost Half of Tenants Wouldn’t be able to Afford Rent Increase

Almost half of tenants across the UK said that they wouldn’t be able to afford any increase in their monthly rent payments, according to research by credit reference agency Equifax.

Almost Half of Tenants Wouldn't be able to Afford Rent Increase

Almost Half of Tenants Wouldn’t be able to Afford Rent Increase

The study also shows that more than half of tenants in London and Scotland are anticipating rent rises this year. 52% of those living in the capital and 55% north of the border expect their rents to be hiked over 2018.

Similarly, more than a third of tenants in all other English regions forecast increases.

The figures, based on responses from 2,136 adults, provide interesting reading ahead of the proposed letting agent fee ban, which is due to be introduced in England some time this year. Some letting agents expect to have to pass costs onto landlords, which will inevitably cause rent prices to rise.

The survey did not, however, ask respondents why they believe that rents will rise.

Overall, 42% of tenants in all regions said that they would not be able to afford an increase in their monthly rent payments, compared to just 11% of mortgage holders.

As a landlord, to ensure that you continue to get paid if your tenants cannot afford the rent, we offer essential Rent Guarantee Insurance, which protects your rental income. Get instant cover online now: https://www.justlandlords.co.uk/rentguaranteeinsurance

Lisa Hardstaff, the Credit Information Expert at Equifax, comments: “It is not uncommon to feel anxious or concerned about finances when heading into a new year.

“The fact that so many renters are concerned about their finances if their rental payments were to increase shows that it is now more important than ever for them to stay in control of their finances.”

She continues: “The concern is, however, not just limited to renters. Nearly a third of all individuals said that they are concerned about being able to afford all of their financial commitments, including rent, mortgage payments and utility bills, over the next year. Planning is vital for individuals to stay in control of their finances.”

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