27 Sep Rents predicted to rise 15% in 5 years
Rents are predicted to rise by 15 per cent over the next five years due to the shortage of properties available to tenants.
Over the past couple of years, the Government has made some significant tax changes that affect landlords including a 3 per % stamp duty surcharge, a tapering of mortgage interest tax relief and an end to the ‘wear and tear’ allowance.
Unfortunately the reduction of properties available to rent has come at a time when supply of rental properties was already failing to meet demand.
This is forcing rental values higher as tenants compete for a home.
The changes made by the Government have had an impact on first-time buyers, combined with schemes such as Help to Buy.
First-time buyers are currently the only buying group on the increase, overtaking homemovers for the first time in 25 years.