RICS Prediction says Rents will continue to Rise

15 August 2012 Categories: News

RICS Prediction says Rents will continue to Rise

The Royal Institution of Chartered Surveyors, or RICS, has predicted further rent increases over the next 12 months, even though some other experts have declared that rents will remain around the level they are at present. Tenants within the private rental sector have experienced an average rent increase of 4.9% since July 2011 but the RICS have now said that they believe another 3.9% increase will occur during the next year.

These claims come on the back of the institution’s latest residential lettings survey, the results from which showed the demand for private rental sector property continuing to grow at a faster rate than the supply throughout the second quarter of this year.  The survey also showed wide regional variations though, with the North-West experiencing average rent increases of 6.9% year on year but Wales experiencing no increase at all.

Global residential director for the RICS, Peter Bolton King commented on the findings of the survey, saying “While tenant interest is still riding high, what remains to be seen is whether many are willing to meet the increasing rents being demanded by landlords.

“However, it is clear we have seen rents grow steadily right across the UK for some time. 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.”