Experts predict rent prices in the UK will rocket 15% over the next five years.
They say it’s not because of Brexit or the rate of inflation, so what do they think will cause this to happen?
Why are rent prices likely to increase?
Well whilst the demand from tenants continues to soar – the supply of new rental property is diminishing, according to industry experts.
Many smaller-scale landlords are selling their properties following tax changes which have made buy-to-let properties less profitable
Who are the experts?
The Royal Institution of Chartered Surveyors (RICS) gathers views of chartered surveyors – who supervise properties, development and construction.
What else have they found?
It is the eighth consecutive quarter the number of rental properties has fallen, RICS added.
Despite the property market remaining “broadly flat”, other parts of the UK particularly, Scotland, Northern Ireland, much of the north of England, the Midlands and Wales are seeing more sales and higher price rises.
East Anglia and the South West are expected to see the sharpest growth over the period.
The survey also found the cost of rent is anticipated to increase by nearly 2% across the UK over the next 12 months as the impact of government policy kicks in.
How is government action affecting the market?
RICS chief economist Simon Rubinsohn said: “The impact of recent and ongoing tax changes is clearly having a material impact on the Buy to Let sector as intended.
“The risk, as we have highlighted previously, is that a reduced pipeline of supply will gradually feed through into higher rents in the absence of either a significant uplift in the build-to-rent programme, or government-funded social housing.
“This augers ill for those many households for whom owner occupation is either out of reach financially or just not a suitable tenure,” Robinsohn added.
Source: iTV