Rents to keep shooting up, says RICS

Tuesday 14th August 2012

Residential rents across the UK have increased by 4.3% over the past 12 months and are likely to go up another 3.9%, the Royal Institution of Chartered Surveyors has said.

The body’s residential lettings survey for the second quarter of 2012 found that in the three months to July, tenant demand continued to grow faster than the rate of supply.

However, the RICS says there are strong regional variations. In the the North-West, rents rose 6.9% but remained static in Wales.

RICS global residential director Peter Bolton King said: “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.”