Rents to rocket by 15% over next five years as number of properties ‘dries up’
Prices are predicted to soar by 2 per cent over the next 12 months with tenants in East Anglia and the South West being hit the hardest
RENT prices could soar by 15 per cent over the next five years as the supply of new properties entering the market "dries up", an industry expert has warned.
The cost of renting in the UK is expected to go up by 2 per cent over the next year as the number of properties available to tenants gets less.
The Charted Industry Surveryors (RICS) has put the alarming figures down to the increasing number of small scale landlords leaving the buy-to-let sector following a tax relief cut.
The cuts, alongside an extra 3 per cent on stamp duty on second homes, means that buy-to-let has become less profitable so landlords are selling up.
But as the number of rentals decreases, there's a sharp spike in the number of tenants because they can't afford to buy as house prices continue to outstrip wages.
They found that 22 per cent of surveyors who took part in the research said they'd noticed a drop in the number of new landlords putting a property up for rent over the past three months.
How to haggle with your landlord and bring down your rent
When you first sign your tenancy agreement with your landlord your rent should be agreed either in writing or verbally.
To increase your rent your landlord must send you a section 13 notice which gives you a month's notice in writing telling you how much your rent will be increased by and the date when your rent will go up.
At this stage you should try to talk to your landlord and come to a fair agreement on how much rent you should pay.
Your landlord can only raise your rent if you agree to the increased price.
Matt Hutchinson, communications director for flatsharing website SpareRoom.com said that if you are a good tenant then you've got bargaining power.
"The first thing to bear in mind is that demand is lower at the moment than over the past couple of years.
"That means you’ve got a bit more bargaining power, especially if you’ve been a good tenant, as your landlord won’t want the expense and hassle of having to find another tenant and even potentially face a period with the property empty.
"Failing that, it’s worth seeing if you can get anything thrown in with a rent increase, such as minor bits of redecorating or any bills."
Landbay have a free rent check service to see how much rent you should be paying in your area.
You can find the rent check service
Find out more about how to haggle with your landlord to bring your rent down here.
It's the third consecutive quarter where this figure has fallen.
By 2023, house prices will have shot up by a huge 15 per cent, with tenants in East Anglia and the South West of England being hit the hardest.
Simon Rubinsohn from the RICS warned that those who can't afford to buy their own house are at the most risk of an affordable housing "shortfall".
He said: "The impact of recent and ongoing tax changes is clearly having a material impact on the buy-to-let sector as intended.
"The risk, as we have highlighted previously, is that a reduced pipeline of supply will gradually feed through into higher rents in the absence of either a significant uplift in the build to rent programme or government funded social housing.
"At the present time, there is little evidence that either is likely to make up the shortfall."
Steve Seal, from Bluestone Mortgages said that the results are "of no surprise".
He added: "Whilst it's great to see more first-time buyers than ever before stepping onto the ladder, what’s choking movement further up is the lack of affordable and suitable housing supply."
LATEST ON HOUSE PRICES
It's a sorry time for tenants following the news that rents have soared 60 per cent faster than wages for struggling Brits over the last seven years.
New research by the charity Shelter has revealed rent in some crunch areas has almost doubled since 2011.
At the same time, average pay after inflation has largely flatlined – leaving millions out of pocket every month.
Brits outside of London now spend more than half of their disposable income on rent.
But for the price of renting a studio flat in London you could rent an entire converted barn in the South East.
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