London rents rocketing for tenants
September 18, 2008
A recent report has shown that in many part of London tenants are seeing their rental costs increase by around 8% a year. This comes as a blow for many tenants who can no longer afford to get onto the property ladder due to high house prices coupled with lack of mortgage availability, and many are now being forced into pay these higher rents because there is little other choice for them.
The collapse of the mortgage market since the onset of the global credit crunch last summer has resulted in landlords seeing a very high demand for rental properties, with those now unable to get the mortgage that they need turning to private landlords in order to get a home. Many of these are younger buyers who can no longer get a mortgage, and have lost access to 100% and in some cases even 95% mortgages over recent months, as lenders have taken more and more deals off the market.
One industry official said that there had been a shift in attitude towards renting, and more and more younger people and professionals were going down this route to find a home.
He said: ‘Until now renting has been a bit of a dirty word. I was brought up to see it as ‘money down the drain’. Owning a house is deeply ingrained in the British psyche and it’s our equivalent of the American dream. But in the new economic climate we’re seeing a real shift in attitudes.’
Over recent months online searches for rental properties are said to have gone up by nearly 50%, but some consumers are finding it difficult to find a place that is affordable.
One official said: ‘People trying to rent a property are saying it’s very difficult to get somewhere at the moment.’
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