Will Rent Increases Hit You Hard?
The cost of property is one of the biggest issues in the United Kingdom these days. The price of buying property is so high that many people feel as though they cannot afford to buy a home, which means that they have to look to the rental market. Of course, when there is a high level of demand for property, there is an opportunity for the landlords to push the price up, which means that many people are facing high monthly rental fees. This can make life very expensive for people, even if they don’t have a mortgage to deal with.
However, life is also difficult for landlords and a recent report suggests that many landlords are likely to pull out of the housing market in the near future. There have been many policy changes in recent times in the UK property market and a growing number of landlords find it difficult to justify their position or costs. For the landlords that stay in the market, there is a need to increase rental fees to cover the costs but when landlords pull out of the market, this means that there is a smaller level of supply in the rental market and this can also lead to a rise in prices.
Tenants are often penalised
No matter what happens to landlords, it is usually tenants that end up being penalised and this will be a concern for a lot of people. It can be difficult to find the money required to live each month and if rent prices are going to increase, tenants will find it even more difficult. The report focused on surveyors and they said that close to two thirds of respondents believed that landlords would exit the property market as opposed to joining it, which could place an increased level of pressure on tenants in the property market.
The Royal Institution of Chartered Surveyors (RICS) believes that private rent rises will outpace house prices over the next five years. This is a worrying trend because even though people will be unable to afford a mortgage, they will find that the cost of renting becomes more difficult. Given that people have to live somewhere, there is a lot of concern over what is going to happen to people. When people cannot afford to buy homes or rent, there are very few options left and this may see many people becoming homeless or dropping off the grid, which isn’t of benefit to anyone.
Are you in control of your finances?
Anyone who is facing an issue with bills on a monthly basis needs to obtain assistance in a way that allows them to take control of their finances. However, anyone who is struggling on a monthly basis needs a different type of help from someone who is struggling on a one-off basis. There are times when a range of bills come in out of the blue or hit us unexpectedly, and this means we need some flexibility with respect to our finances. It is good to get a helping hand and there is no denying that we can all benefit from knowing where to turn to for short term financial support.
If a tenant is struggling on a regular basis when it comes to bills, a guarantor loan isn’t going to be a viable option for them. This is only an option for people who need short term support but for this style of debt, it is a very effective way to impact on your finances. Anyone looking to pay off a bill that comes out of the blue will find that calling on a guarantor will place you in control of your finances once again.
The thought of monthly rental fees increasing again is a great concern for many people and there is no denying that people will need to think ahead when it comes to making the most of their money each month. Landlords are finding it tougher to provide services to tenants but ultimately, it is the tenants who need to find the money to deal with the changing nature of the property market. If you are a tenant and you are concerned about the rental market, make sure you speak to the experts and obtain advice or guidance on what is best for you.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.
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