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UK rent costs to increase faster than house prices


Surveyors have warned that the cost of renting a property in the UK could rise faster than house prices over the next five years.

The Royal Institute of Chartered Surveyors (Rics) have released research that shows in five years time tenants could be paying at least 25% more than they are paying now thanks to the governments moves to discourage buy-to-let landlords.

The Government has introduced recent changes to promote homeownership in the UK, including tax changes that will make things harder for landlords.
Rics did predict that house prices will rise faster than rents in 2016, with house prices increasing 6% next year and rents going up by 3%. Over the long-term, the Rics survey suggests rents could rise by an average of 5% each year for the next five years. House prices, it predicts, could rise by 4.7% a year.

Simon Rubinsohn, Rics chief economist said:
"In the long run I'm concerned that rents might increase rapidly.
"Critically our principal concern with the measures announced by the government is that they are overly focused on promoting home ownership, at the expense of other tenures.

"Discouraging buy-to-let could see private rents take even more of the strain."

Rubinsohn did welcome the government’s plans to build more houses, claiming that it would help ease house price growth.

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