Rise in rents in UK over next 5 years
UK rents are expected to climb by 15% over the next five years, as the supply of rental accommodation dwindles while demand from tenants continues to go up, according to a survey.
Rents are expected to increase by nearly 2% across the UK over the next 12 months, according to the latest survey from the Royal Institution of Chartered Surveyors (Rics).
Small landlords are selling up following tax changes that have made buy-to-let properties less lucrative. Rics said they are being hit by the withdrawal of tax breaks and the extra 3% on stamp duty on second homes. At the same time, more people are looking to rent, partly because they cannot afford to buy their own homes.
The survey showed a net balance of 22% of respondents reported a fall in new landlord instructions in the last three months. It is the eighth consecutive quarter that the number of rental properties on the market has fallen, and this is happening in virtually all parts of the country, Rics said.
The shortfall in new rental accommodation is predicted to push rents up by 15% by the middle of 2023. East Anglia and the south-west of England are likely to see the sharpest growth over the period, especially in the area surrounding High Wycome town centre.
This article was sourced from The Guardian and can be found here.