This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
60% of tenants in the UK have seen their rent rise on their current rental property at the conclusion of their tenancy agreement, according to new research.
Fees
A study by Ocean Finance has also revealed that many tenants are forced to pay over £100 to letting agents to secure a new contract. What’s more, the survey suggests that landlords increase rents by an average of £84 per month, or £1,008 per year, at the conclusion of an existing tenancy agreement.[1]
The survey shows that nearly half of tenants remain in the same house for a minimum of five years. This means they could be forced to pay nearly £600 in letting agents’ fees if they wish to continue to rent out their home.[1]
Figures from the Office of National Statistics show that prices on private rental homes increased by 2.1% in the year to March 2015. This was predominantly driven by the surging market in London and the South East.[1]
60% of tenants hit by rent rises
Booming
Ocean spokesman Gareth Shilton observed that, ‘the buy-to-let market is booming at the moment, driven partly by the London market, although there are strong hotspots across the country. As demand for rented properties continues to outstrip supply and many people struggle to get on to the housing ladder, landlords are in a strong position to continue to increase rents each time a tenancy agreement ends.’[1]
‘On top of rental increases, tenants are facing rip-off fees from letting agents, not just to take new tenancy agreements, but also to roll-on an existing tenancy for another six or 12 months,’ he continued. ‘As letting agency fees range enormously across the country and between agents, tenants are hit by charges for simply renewing their tenancies, credit checks, check in or check out fees. When tenants shop around for properties they should really do the same with agents. It’s very important to check all the additional fees when signing the tenancy agreement to avoid any financial difficulty in future,’ he added.[1]
[1] http://www.propertyreporter.co.uk/landlords/60-of-tenants-hit-hard-with-end-of-tenancy-rent-rise.html
