UK rents ‘to rise by 20 per cent over five years’

House prices in the UK are forecast to rise by 18 per cent over the next five years with rents expected to increase by a fifth over the same period.

Relocate Editorial

9 March 2017

A report from the Royal Institution of Chartered Surveyors (RICS) on Thursday warned that rents could rise by 20 per cent by 2022 and could pose financial difficulties for those on lower incomes.Sean Tompkins, RICS chief executive, said the housing market was falling increasingly out of step with the majority of household incomes, with the result that vulnerable tenants were being pushed out of the housing market.“We see this as a matter of public interest. In the current climate, it can be hard enough for young professionals to make ends meet. But for those on benefits, the pressures may be insurmountable,” he said.

Help-to-rent schemes

“Worryingly our figures show that as a result of a combination of economic pressures, more and more vulnerable tenants are being pushed out of the private rented sector. However, if government were to put in place additional support measures through the introduction of help-to-rent schemes, the door to the rental market may once again be opened for Britain’s most vulnerable.”Responding to the report, a spokesman for the Department for Communities and Local Government said, “This government is determined to make sure that we have a private rented sector that better meets the needs of both tenants and landlords.“That’s why our housing white paper makes clear how we’ll build more homes for rent and make sure renting is affordable for ordinary working families.“We’re also banning letting fees, driving the worst landlords out of the market and promoting longer tenancies on new rental properties.”

Tenant demand continues to grow

The report, based on responses from RICS members, said that tenant demand had continued to grow – with the exception of the London rental market – with 15 per cent more respondents to the survey noting an increase, rather than a fall.On house sales, RICS members reported that both transactions and buyer enquiries remained flat in February. The latter had moved into positive territory last September, but seemed to have gradually lost steam. However, a quarter of respondents reported seeing a property price rise in February.The strongest price growth was seen in the North West of England while, in London, prices fell for the fourth consecutive month, despite an increase in transactions after a year of negative-to-flat growth.As for the future, the majority of surveyors across the UK expressed confidence that transactions would increase over the next 12 months.For related news and features, visit our Residential property section.Access hundreds of global services and suppliers in our Online Directory Get access to our free Global Mobility Toolkit

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