News

RICS claims that rents will keep on rising

15 August 2012

The Royal Institution of Chartered Surveyors (RICS) that residential rents throughout the UK have gone up by 4.3% within the last 12 months and are likely to rise another 3.9%.

The body’s residential lettings survey for the 2nd quarter of 2012 determined that in the 3 months to July, tenant demand persisted to grow quicker than the rate of supply.

However, the RICS claims there are robust regional distinctions. In the North-West, rents went up by 6.9%, in Wales on the other hand remained static.

Peter Bolton, RICS global residential director 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.”