Over recent years, non-homeowners have experience severe problems when it comes to trying to get onto the property ladder, with lenders imposing strict criteria with regards to who they will lend to. This has left many unable to get onto the property ladder, which has resulted in a rising demand for rental homes.
The increased demand for rented property has brought with it further problems for non-homeowners, as it has sent rental prices soaring to a point where some people may no longer be able to afford to rent a home. Figures that were released by the Royal Institute of Chartered Surveyors recently showed that 42 percent more surveyors saw property rental prices increase in the three months to the end of April compared with those that saw a drop. The data also showed that around 33 percent more surveyors were expecting further increases over the coming months compared to those that expected rental prices to come down.
A spokesperson from RICS stated: “Although we are beginning to see more mortgages aimed at first-time buyers, many potential homeowners are still restricted from getting a foot on the property ladder, leading to increased demand in an already oversubscribed rental market. There has been a small uplift in supply, but the imbalance between demand and availability can only mean rents will continue to rise.”
For many people these steep rental increases could mean that they are stuck in a very difficult situation, where they are unable to get a mortgage in the current climate but cannot afford private rent as long as the prices keep increasing. Many may consider going onto social housing waiting lists, but the wait for many people is extremely long because of the sheer number of people that are on lists looking for affordable rented accommodation.
