According to a BBC news report, there are rent rises ahead as landlords pull out of the UK housing market.
The Royal Institution of Chartered Surveyors (RICS) say that landlords are likely to leave the UK housing sector in the coming year owing to legislative changes. Almost two-thirds of surveyors asked by RICS believe more landlords will leave the market than join it in the coming year.
These exits, they say, are fuelled by:
- investors being hit by changes such as the 3% stamp duty surcharge levied on newly-purchased second and subsequent properties; and
- a gradual loss of tax relief on mortgage interest payments.
RICS spokesman Paul Bagust, described the findings as "concerning … a functioning private rented sector is crucial to a healthy housing market."
3% rent rises
RICS' members also believe that rents will rise at 3% a year for the next five years compared with an annual 2% increase in house prices.
The survey also found that interest from property buyers had been static for nine months, with buyer sales and enquiries having little changed in August compared to July, continuing the recent trend.
House prices were rising in many areas of the country including Northern Ireland, Scotland, the North West of England, and the South West of England whilst surveyors predict that house price falls in central London would continue for the next quarter.