Although the UK economy is showing signs of recovery, the housing market remains in turmoil. Despite optimistic reports on increasing average house prices, it should be remembered these positive figures refer to monthly rises and not quarterly or annual gains.

Nevertheless, signs of improvement are enough for many homeowners and property developers to consider how best to proceed in the market.

In view of the difficulty that many have experienced in terms of keeping up with mortgage repayments, putting up property for rent has become popular during the last couple of years. However, have the tenants been properly considered?

Whilst the financial concern of tenants is not, strictly speaking, the landlord’s responsibility, the two are nevertheless interdependent. High rental prices will not deter tenants who would struggle with such costs in a normal housing market because, according to the Association of Residential Letting Agents (ARLA), around 93% of agents have dealt with tenants who have haggled over costs with their landlords. However, whilst some tenants have proved successful in driving down costs, around 65% of ARLA agents have claimed more are falling behind with rent.

Although housing benefit is available to many unemployed tenants, the payments are often made a month in arrears and only after time is lost setting up new claims. This is driving more tenants into rent poverty and, owing to the nature of housing benefit, which is paid directly to the tenant and not the landlord, many tenants are forced to choose between survival and paying their rent on time. As market prices recover and unemployment increases, this problem is set to worsen before it improves, which ought to be realised by landlords and tenants alike.

Related posts:

1. UK Housing Market Recovery: a False Dawn? Homeowners and property developers were given encouraging signs recently that...
2. Further Evidence of a Housing Market in Recovery? On Tuesday, one of the UK’s leading mortgage lenders announced...
3. Mortgage Wars Set to Reanimate Housing Market There have been countless discussions on the global downturn and...
4. Further Glimmers of Hope for Housing Market The Council of Mortgage Lenders announced on Thursday mortgage lending...
5. Home Improvements for an Autumn Sale As a disappointing summer draws to a close, signs of...