Rental demand 'forces prices up'

Posted: 31 Aug 2010 08:34:08 GMT

Increased demand for rental properties is pushing prices up, new research has indicated.

According to figures from the Royal Institution of Chartered Surveyors (Rics), 26 per cent of members have noted there has been a rise in demand for residences.

It is thought worries over a possible double dip in the housing market, difficulty in getting mortgages and large deposits are forcing more people to rent rather than purchase an abode.

Spokesman for Rics James Scott-Lee said leasing costs have been forced up due to the sheer number of people wanting to rent.

"The latest Rics Housing Market Survey shows a lack of funding has stifled demand from buyers, which may cause some moderation to rents as more opt to let than sell," he added.

Industry expert Malcolm Harrison recently claimed the number of Brits wanting to rent will swell over the next few years.

He observed the buy-to-let market is more active and has grown more than what was predicted two to three years ago.
 

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