Recently, the UK media reported a new situation in renting now, which is that many agents pointed out - more and more landlords are asking for new clauses in their tenancy agreements that allow them to raise the rent when the central bank hikes interest rates.

A woman named Claire told the media:

She and her flatmates have recently seen a 20 per cent increase in the rent of their East London home, meaning she is now paying more than £1,000 a month for shared accommodation.

As part of her new contract, Claire also agreed that her rent could rise again within six months if the central bank raised the base rate. She had no choice but to agree to these terms as she felt it was her best option. After all, the rental market is so hot right now that it's not easy to find a suitable property.

In response, Marc von Grundherr, director of the estate agency Benham and Reeves, says:

More and more landlords are asking him to include such clauses in the rental agreement. In addition to the requirement to increase the rent in line with interest rates, there are also contracts that require an 8 per cent increase per year, with the possibility of continuing to increase the rent if inflation is higher.

These clauses are often included in 'rent review clauses' which allow them to increase the rent if certain conditions are met.

Even so, many tenants are willing to accept these terms. They realise that it's not easy to rent a suitable property.

The data shows:

Because of the severe oversupply of rental properties, rents in the UK have soared to record levels over the past year. Some estate agents claim that between 30-100 people apply to rent each rental property.

An exclusive study by Financial Services UK shows:

Renters are under more financial pressure than homeowners, despite interest rates rising 14 times.

Why?

Because the increased costs for landlords are being passed on to tenants in the context of an oversupplied rental market.

If the central bank's interest rate hike has driven up lending rates and increased pressure on landlords to make repayments, the money, ultimately in the form of rent increases by landlords, has landed on the heads of tenants.

In order to be able to live in a house that suits them, tenants can only agree to the landlord's request, in the lease agreement, to agree to the landlord to increase the rent when the interest rate rises.

Rents have gone up, but wages haven't kept up.

Zoopla data shows:

UK rents have risen faster than incomes for 21 consecutive months.

The average monthly rent in the UK has reached £1,126 and around £2,000 in London.

Of these, London remains the fastest growing region for rents, with an annual increase of 13.5 per cent. The biggest regional rent increases over two years were in the eastern boroughs of Newham (+18.1 per cent), Greenwich (+18.0 per cent) and Tower Hamlets (+16.5 per cent).

As this continues, it becomes even more out of reach for tenants to save up and climb the home ownership ladder.

Closing tip for the property world:

The decline in the number of rental properties in the UK is partly related to the policies introduced in recent years to clamp down on buy-to-let in the UK. A number of small landlords have withdrawn from the market as a result, which has led to a reduction in the number of rental properties on the market, but an increasing demand for rentals.

The intention of the UK's crackdown on landlords was to make housing affordable for more people, but as we look at it today, rents are soaring because of the reduction in the number of rented homes, which in turn has increased the burden on first-time buyers who are renting.

Inflation in the UK is still at a high level, with more money being spent on food, clothing and transport, and wages not rising at the same rate as rents. This makes it even harder for tenants to save money. Even if they have saved enough for a down payment, they will be deterred by the high interest rates on loans. Unable to afford a home, they can only stay in the rental market, which is why there have been many more middle-aged and elderly renters in the UK in recent years.

The end result is what we have now, with landlords writing clauses into their tenancy agreements to protect their own interests by increasing rents in line with the central bank's interest rate rises. The tenants have no choice but to agree to this, even if they are not happy about it in their hearts. This is what we have been saying all along, the landlord will only pass the increased cost to the tenant's head and will not lose out himself.