UK rents continue to riseHome rental costs in the UK have risen 4.3% in the last year as many would-be buyers find it hard to get into the sales market, according to a new survey.
The latest Residential Lettings Survey from RICS says that this trend looks set to continue, as those questioned predicted rents to grow by 3.9% over the next year.
Some parts of the country saw more dramatic price rises than others. The North West saw rents increase by the biggest margin – 6.9% – whereas those surveyed in Wales reported that rents had stayed at the same level over the last year.
‘It is clear that we have seen rents grow steadily right across the UK for some time," said Peter Bolton King, RICS global residential director. "This is partly down to the problem of the scarcity of mortgage finance and the large deposits required by lenders. These barriers to home ownership need to be addressed alongside the shortage of new stock coming to the market," he added.
Although prices continue to go up, new properties on the rental market aren't getting easier to find. In the three months to July, the amount of new properties coming on to the market was little changed compared with Q1; a net balance of 2% more surveyors reported falls in new instructions to market.
Demand continues to grow, though fairly slowly, as 4% more respondents reported rises rather than falls in interest from potential tenants.