The continued economic gloom and a shortfall in new build properties means that rental rates will continue to rise from their already heightened levels.
Home buyers are being forced to save up larger deposits which means that they are being forced to remain in rented property for longer. Furthermore, even once they have saved up for a deposit, many people are still finding it difficult to acquire a mortgage.
High demand for rental properties
This means that tenants are remaining tenants for longer periods of time and more people are looking for good quality, long term rental agreements on family homes.
Another reason for the increase, which has seen rent rise by 4.3% over the last 12 months, is that fewer new-build properties are becoming available on the marketplace.
This pushes demand for rental properties even higher and analysts predict that rental prices will rise by a further 3.9% over the coming 12 months. For tenants this means increasing household bills but for good landlords it means longer term rentals at higher prices.
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