Rental prices finally slow down...
In recent times, rental properties have become astronomically expensive, leading to vile, mice infested cupboards being rented out for £1000 a month. But according to a report from LSL Property Services, annual rent rises have averaged out at 0.6%. – which means they’re rising slower than the rate of inflation.
It’s welcome news for cash strapped tenants who have been concerned that rental prices have been spiralling out of control. Now the average rent is £741 a month.
However, David Newnes of LSL says that new reforms put forward by Labour leader Ed Milliband would derail the rental market and cause rents to rise.
Labour pledge that if they’re elected in 2015, they’ll radically reshape the rental market and put in stricter controls, making it harder to evict tenants, scrapping random agency fees and bringing in longer term tenancy agreements. But Newnes says that could spell disaster.
‘It should be remembered how not all landlords are 'fat-cat investors'' he said. ‘Many only have one property used as their pension. Others are 'accidental landlords' and rely on the rent to pay their mortgage. If tenants drop out at the last moment, this could mean hardship. Missed mortgage payments would lead to possible repossession. New landlords would be wary of entering the market or extending portfolios. Many would exit – and again that would be bad for tenants.’
(Still, at least David Cameron wouldn’t be prime minister. I'd pay a bit more rent for that.)