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Rents rise 4% in just 12 months
The cost of renting is expected to rise further still as demand soars and decent properties remain in short supply.
The cost of renting has shot up 4.3% in the last 12 months alone, according to surveyors, who expect another 4% rise over the next year.
The North West saw rents increase the most in the last quarter, rising 6.9%, according to the Royal Institution of Chartered Surveyors (Rics). Rents in Wales, on the other hand, have succeeded in staying at the same level over the last 12 months.
The upwards march in rents is ‘unsurprising’, however, given so many would-be buyers are still locked out of the sales market, said Rics.
Scarce mortgage finance and large deposits requirements are just two examples of barriers to home ownership, said Peter Bolton King, of Rics.
Yet the shortage of good quality properties for tenants to move into appears to be the main reason rents are steadily rising.
While demand continued to grow in the three months to July – albeit it at a slower pace than in previous quarters – the amount of new properties coming onto the market fell further.
In fact, according to Rics, demand has now outpaced supply in every quarter since the first half of 2009.
What remains to be seen is whether tenants, despite their interest, will be willing to meet the increasing rents being demanded by landlords,’ said Bolton King.
‘Barriers to home ownership need to be addressed alongside the shortage of new stock coming to the market,’ he urged.
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