In the next five years rents are expected to rise faster than house prices in the UK.
I read that the Royal Institute of Chartered Surveyors (RICS) are predicting rents will rise by 25% over that period compared with property price rises of 20%. They also reported increased tenant demand for rental properties in the three months prior to January.
The stamp duty changes and tougher mortgage rules may be deterring some landlords from purchasing new properties. Indeed, RICS reported a drop in new properties being offered to let for the fourth quarter in a row. Fewer properties coming onto the market will inevitably lead to rising rentals.
I’ll be interested to see the content of the government’s white paper on housing which will reportedly contain measures aimed at encouraging private developers to provide large volume properties to rent and introduce so-called longer term “family friendly” tenancies.
RICS head of UK policy, Jeremy Blackburn, was quoted by BBC News as saying the government need to give a “turbo-boost” to the build-to-rent sector.
No doubt interesting times lie ahead for the UK rental sector.
If you are a landlord considering letting a property or a tenant looking for a new home why not give me, Eddie Carter, a call on 01684 292154 to discuss your requirements. Alternatively take a look around our website. We specialise in the Worcestershire, Gloucestershire and Herefordshire areas.