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Rent rises could soon outpace house prices, warn surveyors | Rent rises could soon outpace house prices, warn surveyors |
(10 days later) | |
The cost of renting in the UK could rise faster than house prices over the next five years, surveyors have warned. | The cost of renting in the UK could rise faster than house prices over the next five years, surveyors have warned. |
At the end of that period tenants could find themselves having to pay at least 25% more than they do now, according to the Royal Institution of Chartered Surveyors (Rics). | At the end of that period tenants could find themselves having to pay at least 25% more than they do now, according to the Royal Institution of Chartered Surveyors (Rics). |
Simon Rubinsohn, Rics chief economist, blamed government moves to discourage buy-to-let landlords. | Simon Rubinsohn, Rics chief economist, blamed government moves to discourage buy-to-let landlords. |
"In the long run I'm concerned that rents might increase rapidly," he said. | "In the long run I'm concerned that rents might increase rapidly," he said. |
However, he predicted that house prices would continue to rise faster than rents in 2016. | However, he predicted that house prices would continue to rise faster than rents in 2016. |
According to Rics estimates, house prices will increase by 6% next year, and rents by 3%. | According to Rics estimates, house prices will increase by 6% next year, and rents by 3%. |
Rental 'strain' | Rental 'strain' |
Over the longer 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. | Over the longer 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. |
The government has announced a series of measures to promote home ownership, but is introducing tax changes that will make life harder for landlords. | The government has announced a series of measures to promote home ownership, but is introducing tax changes that will make life harder for landlords. |
From 2017, they will be able to claim less tax relief on their costs. And from April 2016, they will have to pay a higher rate of stamp duty. | |
"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," said Mr Rubinsohn. | "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," said Mr Rubinsohn. |
"Discouraging buy-to-let could see private rents take even more of the strain." | "Discouraging buy-to-let could see private rents take even more of the strain." |
However, he welcomed the government plans to build more homes for sale, saying that could help ease house price growth. | However, he welcomed the government plans to build more homes for sale, saying that could help ease house price growth. |
Rics predicts that East Anglia is the region likely to see the fastest growth in house prices in 2016, at 8%, while the West Midlands and the South East will also outperform the market. | Rics predicts that East Anglia is the region likely to see the fastest growth in house prices in 2016, at 8%, while the West Midlands and the South East will also outperform the market. |
However, the North East of England is expected to see the slowest growth, at 3%. | However, the North East of England is expected to see the slowest growth, at 3%. |
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