English rental prices set to increase by 15% in the next 3 years
Landlords across England are set to see their rental property bringing them better returns on their investment across the coming few years, with new forecasts suggesting that rental prices are set to climb for the next three years.
According to the latest predictions released by Belvoir letting agents, a continued lack of properties available for rent over the coming few years will mean that prices climb as tenants are forced to compete for available homes in a marketplace where demand is very high.
It will mean, the agency said, that prices across England will rise by an average of 15 per cent between now and the end of 2019.
In the third quarter of this year, Belvoir said that its offices recorded an average of 88 per cent in terms of demand for rental properties across England, which is sure to affect the market, especially with such trends only likely to continue.
"People from all walks of life, including students, migrant workers and professionals with families, are struggling to meet stringent lender affordability ratios. When someone is not in a position to buy, they obviously start looking for somewhere to rent," said Dorian Gonsalves, Belvoir’s chief operating officer.
Belvoir said that rises will largely be a result of the fact that demand will still outstrip supply in the PRS, but it is also likely that the changes to landlords' costs and taxation will have some sort of a knock-on effect on what tenants are expected to pay in the same period.
The company said that the government has been showing real inconsistency in the way it changes policies that affect the British PRS, and warned that unless there are better targeted ways of making the market work for tenants, then prices could well continue to rise.