London, United Kingdom (18th December 2012) – MeetMyAgent.co.uk, an independent estate agent review and rating website, comments on recently-released figures from property advertising website Rightmove, which shed light on landlords’ rental pricing plans for next year.
The figures, which are based on a sample of 8,594 landlords surveyed by Rightmove, show that one in four landlords intends to increase their rental rates in 2013, with a third of these looking to increase rents by more than 5%.
61% of landlords said that they were planning on keeping rents the same, whilst 14% were undecided.
The research also found that, on average, existing tenants spend approximately 39% of their net pay on rent, and more than a fifth spend over 50% of their take-home pay on rent.
However, in order to pass the income element of references with the majority of well-known firms, tenants must earn enough to afford three times the rental amount.
MeetMyAgent believes that Rightmove’s findings are a strong indicator that rents are becoming unaffordable for people in the UK, and highlights that raising rents isn’t always the most profitable move a landlord can make.
The independent estate agent review website cites rental arrears as a particular issue which could explain why landlords are refraining from raising rental prices next year, as these were estimated by residential property services provider LSL Property Services to be £265 million in October or 8.1% of all rent in England & Wales.
MeetMyAgent recommends that landlords renting out properties with an existing and reliable tenant carefully consider a rent hike, as it is more cost-effective for a landlord to have a good tenant who pays their rent on time rather than one who defaults on their rent.
A spokesperson for MeetMyAgent commented: “These findings are a sign that many landlords are taking a more sensible and business-like approach to the rental of their property.
“Increasing rents is not always the most profitable option to take. With rents increasing and becoming a larger burden on tenants’ outgoings, and with the economic outlook still very fragile, there is an increased chance of tenants defaulting on their rents.
“This will likely cost landlords more in missing rent and stress than simply taking a measured approach and keeping rents the same, especially if they are renewing with a reliable tenant.”
For more information on MeetMyAgent and their estate agency services, visit their website at http://www.meetmyagent.co.uk.
About MeetMyAgent.co.uk:
MeetMyAgent.co.uk is a London-based company specializing in independent estate agent reviews and ratings to help homeowners find the best estate agents for property sales or lettings.
MeetMyAgent.co.uk’s website is simple and easy to use; a user simply types in their area or postcode and then can read independent, objective reviews and ratings from previous clients who have used estate agents in their area.
Contact:
Meet My Agent
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London, UK
Zip: W2 3RA
Email: info@meetmyagent.co.uk
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