Forecasts for squeeze on rental property


The changes made to tax regulations may lead some landlords to reduce the number of properties in their portfolio and will, in return, lead to an increase in rental prices, surveyors have suggested.

According to the Royal Institution of Chartered Surveyors (Rics), rental prices could rise faster than house prices over the next five years to come. This would be the result of more tenants chasing after fewer rental properties available on the market.

The main reason for landlords to possibly slow down are the tax changes that have recently been made by the Government.

The Rics survey was originally conducted before Sajid Javid revealed the Government’s Housing White Paper, and it seems like the paper picked up on a couple of the points.

The BBC reports that Jeremy Blackburn, Rics head of policy, said that ministers had listened the the institution’s point of view to give the private rental sector more priority alongside homeownership.

Furthermore, the survey stated that house prices continued the upward trend in January with no stopping in sight for most of the country over the next 12 months. The only exception to this forecast is London, which may see a drop or at least a plateau.

Rics also mentioned that the number of properties available for purchase remains at a record low, with a rise in demand expected from buyers over the months to come.

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Forecasts for squeeze on rental property

Forecasts for squeeze on rental property


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