Sharp rent rises for tenants in London

According to a recent report many tenants in London are being hit by dramatic rent increases of up to 8% a year, as landlords take advantage of the fact that many people are now being forced to rent property because they can no longer afford to get onto the property ladder due to high property prices and very tight credit conditions stemming from the global credit crunch.

Landlords have said that demand for rental properties has rocketed over recent months due to the difficulties that many people, particularly first time buyers with little in the way of savings, are having when it comes to getting a mortgage and buying their own home.

One official said that attitudes to renting properties had changed over recent years, making rental properties a popular option for many.

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.’

Figures show that since 1994 house prices have gone up by 300% whereas the cost of renting a property has gone up by 50% during the same period. One property website stated that searches for rental properties had rocketed by 44% over the past twelve months.