Demand for rented property is rising because far fewer people can afford to buy a house as a result of the credit crunch. Many homeowners are being forced to sell up because they cannot afford their mortgage. Growing numbers face repossession.
As a result rents are set to increase by an average of 15 percent over the next two months. In London they have already increased by
8 percent in the last 12 months. Average monthly rents stretch from £1,986 in Westminster to £897 in suburban Bexley.
Landlords are also switching from 12 month to six month leases so they can increase rents sooner. It seems the free market will never miss a chance to profit from people’s misfortune.