11th June 2015
Nearly two-thirds of tenants have endured a rent-hike seen on their current property at the end of each tenancy agreement, with many now forced to pay extra fees to letting agents just to renew their contracts claims new research.
The analysis from mortgage and loans provider Ocean Finance revealed that landlords are upping rent by an average £84 a month, or £1,008 a year, at the end of each tenancy agreement.
But in addition, 13% of renters are also being hit by charges from letting agents of £117 on average for renewing their tenancies.
The study shows that over half of tenants stay in the same house for five years or more, which could see them paying almost £600 in letting agents’ fees just for the privilege of continuing to rent their home.
According to the figures from the Office of National Statistics, prices on private rentals increased by 2.1% in the year to March 2015, chiefly on the back of the buoyant market in London and the South East.
Gareth Shilton, Ocean’s spokesperson, says: “The buy-to-let market is booming at the moment, driven partly by the London market, although there are strong hotspots across the country.
“As demand for rented properties continues to outstrip supply, and many people struggle to get on to the housing ladder, landlords are in a strong position to continue to increase rents each time a tenancy agreement ends. On top of rental increases, tenants are facing rip-off fees from letting agents, not just to take new tenancy agreements, but also to roll-on an existing tenancy for another six or 12 months.”