Rising rents to cause debt problems

02/12/2009

Tenants could face increasing money problems going into the New Year due to a rise in rents, it was suggested today (December 2nd).

The latest residential lettings survey from the Royal Institution of Chartered Surveyors (Rics) show that 22 per cent more poll respondents expect a rise, rather than a fall, in costs over the next three months.

This trend - exacerbated by rising unemployment causing personal income insecurity - could have a negative effect on tenant finances and lead to more seeking out debt help.

Rics said that there had been a "drop off" in the supply of rental properties, providing an impetus for future price changes.

Just four per cent of surveyors polled by the organisation reported falling rather than rising rents.

London and the north of England were identified as areas where rents could grow particularly sharply.

Jeremy Leaf, a Rics spokesman, said: "It seems the current upward trend in the housing market is having a more significant effect on the lettings market, with many of the accidental landlords returning to the sales market to take advantage of the recent price increases.

"As a result the recent oversupply is reversing … This of course is impacting on prices and tenants no longer have as strong a bargaining power as they did."

Tags; Housing Debt and Bills, Credit Card Lifestyle, Recent Graduate Debt,

Regional Debt Advice; Debt Help London,

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