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Rental costs continue to rise

Rental costs continue to rise

Category: Money

Updated: 09/06/2011
First Published: 09/06/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The woes for a generation that find buying their own home out of reach continue, with news that the cost of renting is to climb further.

Research conducted by the Royal Institution of Chartered Surveyors (RICS) has found that 42% more surveyors reported an increase in rent compared with those who saw a fall in the three months to the end of April.

And while rents increased across the UK , the increases were most pronounced for those living in London and the South East.

Some surveyors said that prices have risen so sharply in some areas that previously affordable homes are now out of reach, leaving some tenants priced out of the market.

The trend is predicted to continue with 33% more surveyors expecting the price of renting to rise further compared with those who expect it to fall.

But despite spiralling costs, many people have little choice but to join the UK 's legions of tenants.

In the three months, 35% more surveyors reported demand for rental properties increased rather than fell – a two year high.

"Although we are beginning to see more mortgages aimed at first-time buyers, many potential homeowners are still restricted from getting a foot on the property ladder, leading to increased demand in an already oversubscribed rental market," RICS spokesperson, James Scott-Lee, commented.

"There has been a small uplift in supply, but the imbalance between demand and availability can only mean rents will continue to rise."

The new figures are consistent with last month's announcement by LSL Property Services that rents hit a record high in April, with the average tenant forking out £692 a month.

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