In the next five years, price of renting property in the UK is expected to rise by 25 percent, while property values are set to only increase by 20 percent. The number of prospective tenants is expected to rise with less properties available with rental costs rising because of demand.
There continues to be a lack of available properties and the numbers are expected to worsen. The UK government is pushing builders to create large scale family friendly rental properties. This move has been criticized by Generation aren't, an advocacy group that purports that these properties would be limited in who can rent them.
People can only afford about one third of their wages on rents and these properties are too expensive. There is some hope for buy to let properties in the future but the outlook is poor for those just renting.
- UK rents are expected to rise faster than house prices over the next five years, bringing further misery to Britain’s growing army of renters, according to a survey.
- The Royal Institution of Chartered Surveyors has predicted that rents will increase by just over 25% in the coming years, while property values are set to grow by less than 20%.
- With landlords expected to scale back their portfolios in the next 12 months, tenants will have fewer properties to choose from, which is likely to push rents higher, the survey suggests.
"Property values are expected to continue their upward trend across the UK over the next 12 months, except in London, where they are expected to fall further. North-west and south-west England and northern Ireland are seeing strong growth."
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