Rents may soon rise faster than house prices
The Royal Institution of Chartered Surveyors (RICS) has warned that the cost of renting in the UK could rise faster than house prices over the next five years. This would translate to to tenants paying rents of at least 25% higher than current values. The chief economist of the organisation, Simon Rubinsohn, blamed the trend on government moves to discourage buy-to-let landlords. He predicted that in the short term, house prices would continue to rise faster than rents, but when the next five year period is considered, rents could rise by an average of 5% per year, whereas house prices could rise by 4.7% per year.
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