Tenants renting UK housing have experienced rental increases in the past year, according to new figures published by the Royal Institution of Chartered Surveyors (Rics). The organisation's Residential Lettings Market Survey revealed the average cost of renting a home in the UK has risen by 4.3 per cent in the 12 months to July this year. One of the main factors pushing rental costs higher is the lack of suitable accommodation on the market, Rics stated.
The high number of first-time buyers who are unable to save up the significant deposit required to buy their own home is contributing to the demand for properties to lease, which in turn is supporting rental growth in residential real estate. However, the organisation pointed out that, while demand for homes to rent is still rising, it is at a slower pace than previously. Peter Bolton King, Rics global residential director, commented: "It is interesting to see that the huge growth we have seen in demand in recent years has started to gradually slow. While tenant interest is still riding high, what remains to be seen is whether many are willing to meet the increasing rents being demanded by landlords."
In July, LSL Property Services pointed out that the cost of leasing a home in the UK increased for the third consecutive month in June, with the average rent for England and Wales standing at GBP 718 per month, while in London the monthly charge was considerably higher at GBP 1,047. David Newnes, director of the company, explained landlords need to find a balance to ensure tenants can continue to afford to rent their homes. He said that an additional 262,000 households are entering the private rented sector a year, which is largely due to the continual squeeze on incomes preventing would-be property buyers from saving the deposit required to get on the housing ladder.