Residential property rents in the UK increased further in the three months to april, as fresh tenant demand continued to exceed new instructions, according to the latest survey from the Royal Institution of Chartered Surveyors (RICS).
Some 13 per cent more chartered surveyors reported rents step rather than fell in the three months to april. Growth was driven largely by increasing demand as a net balance of 15% more respondents reported rises in prospective tenants of houses in greater demand than apartments.
Rental values in the UK has grown consistently since 2009 as the problem of unaffordable mortgage finance and big deposits required by lenders is still an obstacle to home ownership, with many potential buyers are forced to turn to the rental market.
Significantly, the delivery of property to the market continues to grow, albeit at a slower pace, with seven percent more surveyors reported increases rather than decreases in landlords looking to let their properties.
Not surprising, with rental values steadily landlords gross revenues also continued to grow during the early part of the year, although the pace of growth has begun to slow down. This was the case in every part of the United Kingdom with the exception of London where tenant demand also saw a slight decrease.
In the future, remain surveyors positive that the market will remain strong over the next three months, with 13% more predict the rents will rise rather than fall. Across the UK are counting every area rents to continue to increase, with the exception of Scotland where expectations into negative territory for the first time since October 2009.
“On the rental market is still relatively buoyant and this looks likely to continue, in view of the challenges facing sales market. Mortgage finance can actually be even more difficult to access, especially for first time buyers on the euro crisis continues to deepen, “said Peter Bolton King, RICS global housing Director.
“This points to the tenant demand continues to share the delivery. As a result, rents will remain on an upward fall, adding to the pressure on many households whose income is already being squeezed, “he adds.
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