UK rents to rise faster than house prices – unaffordable rents to become even more unaffordable

The pigs have sniffed out another trough:

“The Royal Institution of Chartered Surveyors has predicted that rents will increase by just over 25% in the coming years, while property values are set to grow by less than 20%.

In the three months to January, tenant demand for rental properties continued to go up. With landlords expected to scale back their portfolios in the next 12 months, tenants will have fewer properties to choose from, which is likely to push rents higher, the survey suggests.

Rics said there was a lack of new listings coming on to the lettings market for the fourth quarter in a row and its members expect this to worsen.

The past few months have seen a number of buy-to-let investors sell up, including Britain’s biggest landlord, Fergus Wilson and his wife, Judith, who declared that the days of small buy-to-let landlords were numbered after the stamp duty increase last year and other tax changes, along with tougher mortgage rules.

The Rics survey was conducted before the release of the government’s housing white paper on Tuesday, which promised encouragement for private developers to build large-volume rental flats for tenants, and more long-term “family friendly” tenancies. Campaign group Generation Rent criticised the fact that these were limited to new purpose-built private rented homes and said renters on stagnant wages needed homes costing no more than one-third of their income. …”

https://www.theguardian.com/business/2017/feb/09/uk-rents-rise-faster-house-prices-next-five-years-rics-survey?CMP=Share_iOSApp_Other