Rent Increases: Top Ten Areas Likely to Witness Rises this Year

Rising Rents

Rising RentsWith the constant possibility of rent rises, a list has been devised by online letting agent MakeUrMove, showing which areas contain the highest number of tenants that may face rent increases. According to the results of the agent’s study, of the two million tenants across the UK that could be hit with these rises, Walsall is at the top of the list.

It has been determined that over 70% of tenants in this town could be affected, resulting in costs of an extra £155 a year. This is due to landlords saying that they feel that they will have no choice but to hike up prices.

Wrexham is another area in which tenants will see a difference, with 70% of landlords planning to increase rents. This will cost individual tenants an average of £161 extra per year, according to the study.

The list also included cities such as St Albans, where 64% of tenants might face increases, and Leicester, where 59% of tenants face the possibility of an increase.

Alexandra Morris, managing director of MakeUrMove said: “The impending Tenant Fees Ban, loss of mortgage interest tax reliefs and regulatory changes have all combined to create a perfect storm of financial pressures. It’s likely that 2018 will be the year that sees tenants feel the biggest impact yet from the recent changes introduced to the private rental sector.

“We can see from our research that increases are going to be felt not just in the major cities, but in smaller towns and cities across the UK, from Portsmouth all the way to Dundee.

“We know many tenants in these areas are already stretching their monthly budgets to afford rental properties, and additional rent increases could be the final straw, tipping them into debt or rent arrears.”

If you are worried about tenant rent arrears, you do have the option of taking out Rent Guarantee Insurance for peace of mind. You can learn more about this on our website.

The list includes the top ten places that could faces rent increases, with Newcastle upon Tyne and Sunderland being the only northern areas in England. Dundee is the only Scottish city that ended up on the list.

According to MakeUrMove’s research, no landlords in Carlisle and Swansea have plans to increases their rents this year.

Morris added: “The rental market differs throughout the country, but what is striking from our study is the widespread nature of these rent increases. Although we recognise that professionalisation of the private rental sector is important, it’s essential the Government doesn’t make tenants the unintended victims of their drive for increased regulation.”

 

Top 10 places tenants will face rent increases

  1. Walsall – 71% of landlords will increase rents

Average annual rent increase: £155

 

  1. Wrexham – 70% of landlords will increase rents

Average annual rent increase: £161

 

  1. St Albans – 64% of landlords will increase rents

Average annual rent increase: £424

 

  1. Portsmouth – 61% of landlords will increase rents

Average annual rent increase: £316

 

  1. Leicester – 59% of landlords will increase rents

Average annual rent increase: £227

 

  1. Newcastle Upon Tyne – 53% of landlords will increase rents

Average annual rent increase: £255

 

  1. Bath – 50% of landlords will increase rents

Average annual rent increase: £417

 

  1. Coventry – 50% of landlords will increase rents

Average annual rent increase: £343

 

  1. Dundee – 50% of landlords will increase rents

Average annual rent increase: £167

 

  1. Sunderland – 50% of landlords will increase rents

Average annual rent increase: £167

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