TENANTS COULD END UP PAYING 25 per cent more than they do for rent in the next five years according to the Royal Institution Of Surveyors (RICS).
It is predicted that house prices will rise 4.7 per cent on average a year for the next five years, Rics is predicting a 5 per cent rise in rent a year. “Discouraging buy-to-let [as planned by the government] could see private rents take even more of the strain,” said Simon Rubinsohn, Chief economist of Rics.
East Anglia will see the fastest rise in house prices, around 8%, predicts Rics, while north east England is expected to see the slowest growth. A rise of 5% a year is expected in London, especially in gentrified areas.
The government is actively promoting home ownership; however, certain restrains of tax avoidance and stamp duty may deter people.
Mr.Rubinsohn partially blames these measures that he deems to be detrimental and one of the main reasons why rent prices are rising by so much.