With housing demand continuing to outstrip supply and fewer people able to afford to buy a home the demand for rental properties is continuing to increase and that can mean only one thing for prices.
A survey by the Royal Institution of Chartered Surveyors (Rics) has suggested that more price increases for tenants are due in the next few months.
Their survey found that 42% more surveyors had reported seeing a rise in rental prices during the past three months than those who had seen a fall, with the biggest increases coming the in the south-east of England and of course in London.
33% more surveyors also predict that the price of rent will continue to increase in the coming months than those who think it will fall.
Rics spokesperson James Scott-Lee explained, “Although we are beginning to see more mortgages aimed at first-time buyers, many potential homeowners are still restricted from getting a foot on the property ladder, leading to increased demand in an already oversubscribed rental market.”
“There has been a small uplift in supply, but the imbalance between demand and availability can only mean rents will continue to rise.”
A separate survey that was released last month found that April had seen a record high for rental prices in England and Wales.
LSL Property services said the average rent was £692 a month in April, wit so many people unable to buy a house.
That being said, there are signs that lenders are starting to gear their products towards helping more first time buyers make their first steps onto the housing ladder.
Two years ago there were just 62 mortgage products aimed at first time buyers, a figure which has increased to 183 now according to magazine Moneyfacts.
There is still a way to go to reach pre recession levels as in July 2007 there were over 1000 products aimed at those with a 5% deposit, a figure that has fallen to 31 in the present day.