Rents rising as tenant demand soars
Rents are rising at their fastest rate for three years, with tenant demand increasing "significantly" in the Midlands. Research by the Royal Institution of Chartered Surveyors (RICS) released today reveals that demand for homes to let continues to soar.
A rise in rents during the third quarter was reported by 39 per cent more surveyors than those which saw a fall - the highest level since 2007.
RICS spokesman Jeremy Leaf said: "The lettings sector has become increasingly strong over the past nine months, in contrast to the housing market, which continues to slow.
"Many have turned to the rental market because they fear further price reductions in the housing market, or because they cannot obtain the necessary finance to buy.
"As a result, rents continue to rise, with supply failing to keep up with demand."
It is thought that potential first-time buyers are looking to rent as they continue to fail to find enough money to put down a deposit to get on the housing ladder.
A total of 33 per cent of surveyors experienced a rise in tenant demand during the quarter but the number of new properties available to let fell for the fifth consecutive quarter. Thirty-four per cent of surveyors are predicting there will be further rent rises compared with those who expect falls.
