The website is predicting a 2 percent increase in rents over next year.
The majority of landlords (61%) were described as taking a ‘benevolent’ attitude towards rents and are not looking to increase rents, 14% of landlords were undecided, and a pessimistic 1% expected to actually reduce rents.
Miles Shipside, director and housing market analyst at Rightmove comments:
“The widening gap between tenant demand and rental property supply over the last few years has fuelled upwards pressure on rents. However, the majority of landlords now seem to be prepared to exercise constraint and are planning a ‘rent freeze’ for 2013. Lettings agents still report consistently high demand but more are warning landlords of the risks of squeezing tenants’ finances too hard. However, some tenants in rental hotspots like London and Manchester may bear the brunt of higher rises. This combination of apparent benevolence and bullish hotspots may give a less racy rent rise outlook overall, but does not mask the fact that some tenants are again in for a rent rise shock.”
Rightmoves data reports-
- A increase in average rent of 13.64% between Q3 2009 and Q3 2012.
- Existing tenants spend an average of 39% of their monthly take-home pay on rent.
- 22% of tenants currently spend more than 50% of their monthly earnings. (after mandatory deductions)
“Landlords appear to be becoming increasingly aware of the need to strike a balance between long-term security and short-term gains. They need to weigh up whether it is better to ‘stick’ and hold rents for a model tenant or ‘twist’ and chance a rise and run the risk of ending up with a less desirable occupant, or even a void. Interestingly, around one in four landlords is an ‘accidental landlord’, and with 9% of landlords stating they are actually tenants themselves, perhaps this growing band of non-professional landlords is more sympathetic to tenants’ rental price concerns?"