Low income earners have difficulties in paying their rents

Property owners are becoming less lenient by evicting tenants who fail to pay rentals on time. Recently the demand for rented properties has increased because many people cannot afford to buy new homes for themselves. Research conducted by Templeton LPA, a specialist company which assists LPA receivers concluded that as of 2011, the number of leaseholders facing financial problems has increased considerably.

Although the demand for rented properties continues to reach even higher peaks, there is no enough rental property coming on the real estate market to match the demand. It was unheard in cities like London that a property is let within a day of being placed on the market. Real estate experts suggest that the demand for properties will continue to rise in the short term as the cost of living and renting is impacting much on low income earners.

The average rent is now at £28 a month higher than June and at the same time the total annual return on rental property stands at 1.3 percent. Increased demand will be driven by the private sector forcing the rents even further. Therefore, landlords thinking of long term rentals will benefit more.

Throughout the past year London rents increased faster at a rate of 6.9 percent than any other region of England and Wales, whereas sharp increases were also experienced in the North East and the West Midlands, where rents increased by 5.1 percent and 4.6 percent respectively. In the past year, the only region in which rents fell was the east of England by a small margin of 0.3 percent.

Experts are hoping to solve the current accommodation crisis, people's incomes must be inline with the price of available houses on the market.

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