Rents set to rise by as much as 15% as demand among tenants increases

The cost of renting property is set to rise by as much as 15% by 2023. According to the Royal Institution of Chartered Surveyors (RICS), a shortage in supply of rental property is going to push the price of renting up forthcoming years.

The RICS Residential Market Survey for July reports a decline in the amount of new properties available to rent. This is the eight consecutive quarter there has been a drop in rental homes coming onto the market.

With fewer rental properties available yet with demand for rental properties among tenants still strong, rent prices are estimated to increase by just below 2% during the next 12 month and by as much as 15% by 2023.

RICS’ Residential Market Survey for July confirms further data and analysis about rising rental prices.

The ARLA Propertymark June Private Rented Sector Report showed that 35% of tenants had experienced rent rises. The report also found that demand from prospective tenants increased in July to the highest levels of the year so far. The research showed there hasn’t been an increase in prospective tenant demand this significant since September 2017.

The HomeLet Rental Index found that rents went up in the UK by 1.3% over the year to July 2018. According to the HomeLet Rental Index, the average rental value for new tenancies in London is £1,615 a month and that rents have increased in the UK capital by 3.3% compared to last year.

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