New research suggests rental prices are showing signs of easing as landlords pay attention to tenant affordability considerations.
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UK rental prices rising at ‘a more modest pace’
The average monthly rent now stands at £904, which is only 0.4 per cent higher than a year ago, according to Homelets. It is also the lowest rental price inflation figure since February 2010.
Martin Totty, chief executive of HomeLet, said: “Rents have been rising at a more modest pace across the whole of the UK in recent months, with lower levels of rental price inflation and even falling rents in areas of the country where prices were previously rising most quickly.
“We continue to see landlords’ and letting agents weighing tenant affordability considerations very seriously,” he added.
Steadying rental process good news for low-income families
The news comes as further research from housing charity Shelter has found that low income families are struggling to make ends meet.
It found that one in three low-earning renters have borrowed cash to cover their rent as they struggle to keep up with rising prices. Shelter claims that as many as 500,000 renters on low incomes borrowed from credit cards, overdrafts or friends and family during the past year.
Ahead of the General Election next month, the charity is calling for more rental homes for working families and is urging the next Government to invest in half a million new properties to meet this requirement during the course of the next Parliament.
Anne Baxendale calls on UK government to build more rental properties
Anne Baxendale, director of communications, policy and campaigns at Shelter, said: “No family should have to choose between relying on their credit card to keep up with the rent or moving miles away from their jobs and schools to find a home they can actually afford.
“But it doesn’t have to be this way.” She added, “The next Government must commit to building half a million new rental homes to genuinely help ordinary families to get by and give them a firmer foundation for the future.”
Baxendale isn’t the first to call for the Government to build more rental properties. At the end of last year Helen Gordon, chief executive of residential property business Grainger Plc, urged the government to consider a buy-to-rent scheme, saying that Grainger themselves planned to invest £1 billion in ‘high quality, long term rental housing’ by 2020.