Rent rises expected across the UK

The Royal Institute of Chartered Surveyors has today confirmed that UK rents are set to increase in the short to medium term as the number of properties coming onto the rental market continues to decline. For the second quarter in a row we have seen a reduction in homes available for rent across the UK as those who were struggling prior to the recent economic upturn, and forced to rent out their properties, are now placing them back on the market for sale.

While there is every chance that this recent development could reverse in the short to medium term if the UK property market continues to slow and the number or property buyers continues to fall, this is by no means certain to happen. However, in the short term it looks as though a lack of housing for rent across the UK will see rental values pushed up and place more pressure upon the budgets of many families.

The buy to let market had been a very lucrative area of the UK economy for many years prior to the recession but many property investors appear to have overextended their finances and paid the price with their portfolios falling like a pack of cards. It is worrying that the cost of living in the UK appears to be picking up quicker than household income which will place more and more financial pressure on more and more people across the country.