Rising rates 'will hit renters hard'

Monday 26 April 2010

Article by Mozo

Renters will be forced to pay the price for rising interest rates over the next two years as landlords pass on higher mortgage costs to tenants, it has been claimed.

Property analyst Residex and the country’s biggest real estate chain Ray White has said that the continuing shortage of available housing and Australia’s increasing population are adding to the rate pressure, with weekly rents expected to rise by as much as $108 in the next two years.

Ray White director Ben White told News Limited: "Every force in the marketplace will be driving rents higher.

"The mortgages of rental property owners are becoming more expensive, so it’s inevitable that this will result in rents going up."

Residex predicts that Sydney will be hardest hit by the trend, with rents expected to be $108 a week higher in two years, while Melbourne’s weekly rents are expected to be $71 more expensive by 2012.

Last week, home loan expert John Symond told the AAP that consecutive rate rises have led to a fall in consumer spending and mortgage demand.

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