Weaker bargaining power for tenants reported

It has been reported that tenants in the UK now have weaker bargaining power when it comes to renting a property, and this is the result of fewer homes coming into the market for rent, according to industry officials.

The cost of renting had been falling as a result of a flood of properties coming onto the market when homeowners were unable or unwilling to sell in the difficult market conditions towards the end of last year and the start of this year.

However, surveyors have said that in the three months to July there was a slowdown in the falling cost of renting, and this resulting in potential tenants losing some of their bargaining power. The data comes from research that was carried out by the Royal Institute of Chartered Surveyors.

Officials from the group said that now that the market is more stable and property prices have increased slightly more homeowners are prepared to consider selling their property rather than renting, and the falling number of properties coming up for rent could prove bad news for tenants.

However, despite this RICS has said that tenants are still in a far better position to push for a bargain rental price than they were two years ago. It is likely that rents will continue to fall in the coming months according to surveyors but they have predicted that the falls will be much slower than those seen previously.

An official from the National Landlords Association said that changes in the property market had opened up more options for homeowners, stating: “People who may not have been totally prepared for all the responsibilities of letting properties now have options to sell and do not feel pressurised into the private rented sector.”

Tags: RICS, difficult market conditions, National, fewer homes, tenants, Association, sector