Tenant demand pushes PRS rents up
Tenant demand has pushed private rents in the UK up over the past three months, according to figures from the Royal Institution of Chartered Surveyors.
RICS’ latest residential lettings survey showed 13 per cent more chartered surveyors reported rents rose rather than fell in the three months before April.
Fifteen per cent more respondents also noted rises in the number of prospective tenants, with houses in greater demand than flats. The number of chartered surveyors who responded to the survey across the UK was 183.
London appears to buck the trend with 22 per cent more surveyors reporting falling rather than rising instructions to let while rents in the capital grew at the fastest pace.
Peter Bolton King, RICS global residential director, said: ‘The rental market is still fairly buoyant and this looks likely to continue, given the challenges facing the sales market. Indeed, mortgage finance may become even harder to access particularly for first-time buyers if the euro crisis continues to deepen.
‘This points to tenant demand continuing to outpace supply. As a result, rents will remain on an upward trajectory, adding to the pressure on many households whose incomes are already being squeezed.’
Housing minister Grant Shapps has consistently insisted rents in the private sector are falling, rather than rising. Prime minister David Cameron has claimed private rents are falling as a result of welfare reforms.
Inside Housing research in February showed out of 204 authorities, just 36 reported any rent reductions in return for direct payment of the local housing allowance.