Rental prices could rise again from 2015
22nd Oct 2012
In recent months, people living in the private rental sector of the UK property market have been seeing prices heading upwards thanks to landlords capitalising on demand, leaving monthly expenditure at £741.
However, according to a newly released report from the National Housing Federation, this could be a situation which gets increasingly difficult for tenants within the next few years.
It said that prices will remain largely flat between now and 2015, but that from that point until 2018, they could soar by as much as six per cent per year as interest rates and house prices start to head in an upwards direction once again.
This means that overall, tenants will find the cost of accommodation heading up by 25 per cent in six years. This is on the back of a 37 per cent rise in the last five years despite flat improvement in real wages during the same period.
David Orr of the organisation, said: "Successive governments have failed to tackle the under-supply of housing and time is now running out. If we don’t urgently fix the housing market we will have a generation who are priced out of renting a home, let alone buying one."
Posted by Staff Writer: Ewan Robertson
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