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Demand for rental property on the up

Many people are adopting a wait and see policy when it comes to purchasing a property, so the demand from tenants requiring rental properties is higher than ever

With interest rates constantly changing and tighter lending criteria in place from banks and building societies, the number of those looking to rent instead of buy has risen dramatically.  

A recent report by YourMove.com showed that there was a 38% increase in lease commencements from the start of the year to last month, and in May and June alone, there was a 3% increase.

Whilst rental demand is up, there is a word of warning from Moneyexpert.com for landlords to keep an eye on tenant finances to ensure they don't fall into arrears.

Research has shown that those in rented accommodation spend up to 13% of their weekly disposable income on energy compared to 5% among homeowners.

The main reason behind this is that tenants are more likely to use more expensive prepayment meters and are less likely to switch to cheaper energy providers.