Around a quarter of private tenants are fearing rent rises after it was announced that landlords’ tax relief will be cut.
In the July Budget, Chancellor George Osborne revealed that tax relief on landlord interest mortgage payments will be reduced to the standard rate.
Tenants Fear Rent Rises
Landlords have voiced their concerns over these plans, but tenants are now worried about the impact these cuts will have on them. It is thought that the cost will be passed onto tenants through rent increases.
A survey of 1,000 UK tenants by Google Consumer Surveys on behalf of Makeitcheaper.com uncovers renters’ concerns.
The study found that 38% of tenants are feeling uncertain over how the cuts will affect them and over half would like greater rent controls to be introduced.
Worryingly for landlords, 35% of respondents said they would move to a different property if their rent did rise.
Already, tenants in the UK suffer some of the highest rents in Europe. Further rent increases would leave British renters paying much higher costs than those in other European countries.
If prices do rise, only 20% of tenants would stay in their current home. Shockingly, one in ten said they could be forced to seek council housing.
However, 17% said a rent rise would prompt them to buy their own home, which could be a positive.
Therefore, landlords could potentially lose 80% of private UK tenants, who would be unable to afford a price increase.
There are rules that landlords must stick to regarding rent rises, however, for example, landlords cannot increase prices during a fixed-term tenancy agreement before the end date without a tenant’s agreement.
Makeitcheaper.com has revealed how tenants would react to a rent rise:
How would a rent increase impact your current housing situation?
- 34.8% would seek a cheaper private tenancy.
- 20.4% would stay in their current home.
- 17.1% would be more motivated to buy a property.
- 12.7% would consider becoming a council tenant.
- 15% gave other options.