Demand is squeezing rental market, says RICS
Increased tenant demand in the West Midlands pushed rents higher in the first three months of 2011, according to the latest RICS 'Residential Lettings Survey'.
It found that 53 per cent more respondents in the region reported a rise in demand rather than a fall in the three months to April 2011.
The report also suggests that home ownership remains "out of reach" for many would-be buyers, attributed to the high deposits required by lenders and cost of available mortgage finance.
Rents were also on the up in the West Midlands. Thirty-seven per cent more surveyors reported a rise rather than fall in the three months to April (up from 36 per cent in the previous quarter).
Richard Franklin, RICS West Midlands spokesman, said the restriction of owning a home for many potential buyers had led to the increase in demand "in an already oversubscribed rental market".
He said: "The imbalance between demand and supply appears to suggest a structural shift in the market suggesting rents can only continue to rise, until finance becomes more available or peoples long term employment prospects improve. The main indicators are that this unlikely to happen in the near future."
