Rental income set to increase over the next 5 years
Rents are set to surge by 15% over the next five years, as a shortage of properties pushes up prices, the Royal Institution of Chartered Surveyors (RICS) has predicted.
The reduction of new property coming to the market last month was the most striking aspect of the market, with 22% more surveyors noting a fall rather than a rise in new landlord instructions. It is the eighth consecutive month of declining supply.
The shortfall will have a limited impact in the short term, raising rents by around 2% nationally, but by 2023 there will be a significant increase in costs for tenants, according to the findings.
The whole Country has shortages of good living accommodation
The body blamed buy-to-let tax changes for pushing small landlords out of the market and said the fall in instructions was “evident in virtually all parts of the country”.