"Tenants who can’t yet afford to buy will be dealt a further blow with rent rises of as much as 10% expected over the next 12 months according to a new Rightmove survey" reports Belvoir the leading letting agents in Cambridge.
Rightmove, the UK’s number one property website, is predicting further rises of 53% of all tenants expect rents to rise across the most desirable locations such as Cambridge, and 50% in the most sought-after central zones. These rises follow average rent rises of 11.5% across the capital last year.
Those in central Cambridge will be hit hardest, but tenants outside the capital will also see rises. Although the Buy to let index shows a climb of 3% this is compared with last year, indicating an ongoing lack of rental supply.
A total of 5,356 responses were received from the survey
"Stock shortages persist, which is good news for landlords," says Miles Shipside director of Rightmove the UKs number one property website. He also added: “In spite of the rising rent environment of the last two years, the majority of tenants still expect to pay even more a year from now.
The study shows that landlords in prime Cambridge locations such as Riverside, Newnham and areas surrounding the station prosper the most: rents there shot up by 7 – 10% last year.
But for tenants already feeling the squeeze, it’s a bitter blow. According to the Association of Residential Letting Agents, in the last three months of last year 40% of its members reported an increase in tenants struggling to meet payments. This was the first time the number has risen in 18 months. This suggests that job losses and pay cuts are beginning to take hold, the association says.
The impact of higher rents will also be felt in the residential sales market: high and increasing rents give aspiring buyers little chance to save for a deposit.
Belvoir urgently requires more rental properties in Cambridge of all kinds to satisfy demand in and around the Cambridge area.
Belvoir Lettings Agency Cambridge is the one stop specialist for residential lettings including property management, tenant find, property investment and wealth management advice, fit-outs and renovations, investment property insurances and mortgages