The latest news from the Royal Institute of Chartered Surveyors (RICS) made great reading for landlords with the report that PRS rents had risen over the past year. However, the report could be really bad news for tenants and their finances as rental rates are set to increase again over the next 12 months.
Tenants without Rent Guarantee Insurance could face having their finances stretched even further as PRS rental rates are predicted to rise by almost 4% over the next 12 months, according to the latest RICS residential lettings survey.
The latest RICS survey revealed that Private Rented Sector (PRS) rents had risen by 4.3% over the last 12 months and that the upward trend appears to be somewhat sustainable due to the lack of realistic mortgage finance and high deposits required for First Time Buyers (FTBs) and a lack of suitable residential properties available for rent by tenants on the market.
The RICS residential lettings survey predicts that, over the next year, UK PRS rents could be set for an average rise of 3.9% across the whole country.
Tenants in the North West of England saw the biggest rental increase over the last 12 months, with rents rising by an average of 6.9%, while PRS rents in Wales failed to increase during the same period.
Landlords are urged to protect their rental income and provide their tenants with a little peace of mind using Rent Guarantee Insurance. A simple and affordable insurance policy that can make a great deal of difference, for both tenant and landlord finances.
Statistics from the Council of Mortgage Lenders (CML) have also shown that in the UK, over the last 12 months, Buy-To-Let mortgage lending increased by almost 20%.
Professional landlords and property investors, who are able to obtain finance, are snapping up as many suitable residential properties that they can afford, in order to profit from some of the best rental yields earned from UK rental property for a good few years.