{"id":6621,"date":"2016-03-24T10:21:50","date_gmt":"2016-03-24T10:21:50","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=6621"},"modified":"2018-02-16T11:12:15","modified_gmt":"2018-02-16T11:12:15","slug":"tenants-face-being-priced-out-of-the-rental-market","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/tenants-face-being-priced-out-of-the-rental-market\/","title":{"rendered":"Tenants Face Being Priced Out of the Rental Market"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p><span style=\"line-height: 1.5;\"><span class=\"TextRun SCX104473639\" xml:lang=\"EN-GB\"><span class=\"NormalTextRun SCX104473639\">Over<\/span><\/span><span class=\"TextRun SCX104473639\" xml:lang=\"EN-GB\"><span class=\"NormalTextRun SCX104473639\"> the next few years<\/span><\/span><span class=\"TextRun SCX104473639\" xml:lang=\"EN-GB\"><span class=\"NormalTextRun SCX104473639\">,<\/span><\/span><span class=\"TextRun SCX104473639\" xml:lang=\"EN-GB\"><span class=\"NormalTextRun SCX104473639\"> those who are struggling to save a deposit for a <a class=\"wl-entity-page-link\" title=\"homes\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home;http:\/\/rdf.freebase.com\/ns\/m.01l0mw;http:\/\/dbpedia.org\/resource\/Home\" >home<\/a> are to be joined by those <\/span><\/span><a class=\"Hyperlink SCX104473639\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/young-people-could-be-pushed-out-of-rented-housing\/6371\/\" target=\"_blank\" rel=\"noopener\"><span class=\"TextRun Underlined SCX104473639\" xml:lang=\"EN-GB\"><span class=\"NormalTextRun SCX104473639\">struggling to save up for a deposit<\/span><\/span><\/a><span class=\"TextRun SCX104473639\" xml:lang=\"EN-GB\"><span class=\"NormalTextRun SCX104473639\"> on a <a class=\"wl-entity-page-link\" title=\"rental\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/renting\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/renting;http:\/\/rdf.freebase.com\/ns\/m.01y857;http:\/\/dbpedia.org\/resource\/Renting\" >rented<\/a> <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property;http:\/\/rdf.freebase.com\/ns\/m.05wrt;http:\/\/dbpedia.org\/resource\/Property\" >property<\/a>, according to research.<\/span><\/span>And tenants in <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/london\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/london;http:\/\/sws.geonames.org\/2643743\/;http:\/\/rdf.freebase.com\/ns\/m.04jpl;http:\/\/yago-knowledge.org\/resource\/London;http:\/\/dbpedia.org\/resource\/London\" >London<\/a> are also facing the biggest rise in rents over the coming years with experts predicting rent increases of 39% by 2026. \u00a0<\/span><\/p>\n<p>The problem for tenants comes with <a class=\"wl-entity-page-link\" title=\"Landlord\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/landlord\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/landlord;http:\/\/rdf.freebase.com\/ns\/m.02mx_6;http:\/\/dbpedia.org\/resource\/Landlord\" >landlords<\/a> demanding at least four or six weeks rent as a deposit but with the average rent set to rise to \u00a31,111 means that renters could struggle to get a foot on the rental ladder.<\/p>\n<p>The findings come from the Centre for Economic and Business Research (CEBR) for a financial comparison website and they also reveal that rents are set to grow by 28%.<\/p>\n<p>As result, the average rental deposit will be 70% of a person&#8217;s average monthly income, though there are various regional variations, and to compound the situation wages are only set to rise by 20% over the same period.<\/p>\n<h2>Potential tenants in London<\/h2>\n<p>For potential <a class=\"wl-entity-page-link\" title=\"tenant\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/leasehold-estate\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/leasehold_estate;http:\/\/rdf.freebase.com\/ns\/m.03jg1x;http:\/\/dbpedia.org\/resource\/Leasehold_estate\" >tenants<\/a> in London, CEBR is predicting rent deposits to <a href=\"http:\/\/www.expressandstar.com\/business\/city-news\/2016\/03\/10\/cost-of-rental-deposits-likely-to-keep-shooting-upwards\/\" target=\"_blank\" rel=\"noopener\">rise to \u00a32,733 over the next 10 years<\/a> &#8211; or 120% of a person&#8217;s average monthly income. That&#8217;s up from 99% just last year.<\/p>\n<p>In addition, deposits for a private rented home are set to rise across the South of England where deposits in the South East will reach \u00a31,469 by 2026 &#8211; or 83% of an average income and that&#8217;s up from 72% last year.<\/p>\n<p><i>Essentially, <\/i><i>tenants will find the cost of renting <\/i><i>is <\/i><i>as unaffordable as <\/i><i>it is for <\/i><i>those looking to buy a property.<\/i><\/p>\n<h2>Landlords\u2019 profits erode<\/h2>\n<p>A spokeswoman for the financial website which commissioned the research said: \u201cThe rapid rise in <a class=\"wl-entity-page-link\" title=\"Rates (tax)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/rates-tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax;http:\/\/rdf.freebase.com\/ns\/m.03hnzm;http:\/\/yago-knowledge.org\/resource\/Rates_(tax);http:\/\/dbpedia.org\/resource\/Rates_(tax)\" >rates<\/a> and deposits is a double blow for those on the rental ladder and the upcoming changes of tax legislation and restrictions on <a class=\"wl-entity-page-link\" title=\"buy-to-let\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/buy-to-let\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/buy_to_let;http:\/\/rdf.freebase.com\/ns\/m.083ycg;http:\/\/dbpedia.org\/resource\/Buy_to_let\" >buy to let<\/a> <a class=\"wl-entity-page-link\" title=\"Mortgage loan\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/mortgage-loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan;http:\/\/rdf.freebase.com\/ns\/m.0273t5w;http:\/\/dbpedia.org\/resource\/Mortgage_loan\" >mortgages<\/a> will see landlords\u2019 profits erode and there&#8217;s no doubt these extra costs will be passed onto the tenants.<\/p>\n<p>\u201cDeposits are likely to continue growing in the current booming property sector and we could see deposits of six weeks rent being extended to 8 weeks.\u00a0This means that many people are facing being priced off the rental ladder and the property ladder too.\u201d<\/p>\n<p><b><i>She added that the government needs to <a class=\"wl-entity-page-link\" title=\"Stairs\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/stairs\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/stairs;http:\/\/rdf.freebase.com\/ns\/m.01lynh;http:\/\/dbpedia.org\/resource\/Stairs\" >step<\/a> in to help prevent the cost of rent and deposits from spiralling out of control as this will have a significant economic impact and tenants should be given a lifeline, much like the financial incentives given to people for buying a home.<\/i><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the next few years, those who are struggling to save a deposit for a home are to be joined by those struggling to save up for a deposit on a rented property, according to research.And tenants in London are<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/tenants-face-being-priced-out-of-the-rental-market\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":6622,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[17],"tags":[83,260,295,28,92,111,82,58,204,298,103,271,20,30,59,274,47,164,52],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2016\/03\/money-struggle.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/tenants_face_being_priced_out_of_the_rental_market","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/6621"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=6621"}],"version-history":[{"count":2,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/6621\/revisions"}],"predecessor-version":[{"id":14740,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/6621\/revisions\/14740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/6622"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=6621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=6621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=6621"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=6621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}