A new survey by property finance broker Finbri has found that over 60% of UK renters are “concerned” or “strongly concerned” about the potential impact of rising interest rates on their monthly rental payments.
The survey of 1,001 renters also revealed that 19.38% of respondents had already experienced unaffordable rent increases and other issues while renting a property.
The concerns of renters come as over half of UK landlords (52.75%) have said they will raise rents when interest rates reach their predicted peak of 4.5% this summer.
Stephen Clark, from Finbri, said that the relationship between landlords and renters is “more symbiotic than ever before”, and that rising interest rates are a concern for both parties.
The survey also highlighted the significant increase in rental prices over the past year. Private rental prices paid by UK tenants rose 4.2% in 2022, according to the Office for National Statistics, while outside of London, asking rents have increased by more than 3% over the past three months, according to Rightmove.
The average monthly rent outside of London is £1,162, while in London it is £2,343, with rents in the capital having increased by 16% in the past year.
As interest rates continue to rise, the concerns of renters are likely to grow, with many already struggling to make ends meet with the current rates.
The survey highlights the need for a collaborative approach to the private rental market, with both landlords and renters needing to work together to navigate the challenges posed by rising interest rates and increasing rental prices.
