UK landlords 'to freeze rents in 2013'
Published by Sarah Ashcroft
A large proportion of landlords in the UK have declared they are not going to increase their rents over the course of 2013.
Members of the Residential Landlords Association (RLA) responded to a survey questioning them on their intentions for the year ahead. Some 56.5 per cent said they would definitely not issue a demand for more rent from tenants in the coming months, while another 11.8 per cent revealed they had not yet decided what to do.
Richard Jones, policy director at the RLA, explained the results show the idea that landlords are keen to constantly increase rents is merely a myth. The reality is that many are much more balanced than that.
"Whilst it is true that rents in London as a result of serious supply problems remain stubbornly high, policy makers should avoid thinking that what happens in the capital reflects the rest of the country," he stated.
"At a time when tenants are facing squeezes on their costs of living, especially falling wages, landlords are responding by accepting real terms cuts to rents."
The period of economic difficulty experienced by the UK in recent years has made it harder for many people to get on the property ladder, forcing them towards rented homes in large numbers. There is a conception that landlords are cashing in on this trend by hiking rents, but the survey indicates this may not be the case.
Between 2008-09 and 2011-12, rents in the private sector went up by just over seven per cent. During the same period, inflation in the UK was 12.5 per cent, showing landlords have not taken advantage to an unfair extent.
Looking away from the private rented sector, it was noted the social rented sector witnessed rent increases of almost 17 per cent over the same time.
Of those surveyed, a total of 31.7 per cent indicated they are planning to implement a rise in rental charges this year, with some areas likely to be most harshly affected.
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Published on: February 28, 2013
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