Over the next five years, the prediction is for rent prices to rise faster than house prices, according to new research from the Royal Institute of Chartered Surveyors (RICS).
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Fewer properties mean rent set to rise
The RICS’ survey found that a number of landlords are considering selling up – or at least reducing their portfolio – as a result of tax changes brought in last year.
However, with demand for rental properties still high, the narrowing of the market could mean landlords are able to raise rents – so much so that the RICS predict the price of renting a property will rise faster than the price of buying one over the next five years.
New housing white paper could shake things up
However, the RICS’s survey was conducted before the government released its housing white paper last week. With the government looking to push longer-term tenancies, it may become more difficult for landlords to raise rents regularly.
If you’re concerned about if and when you’ll be able to review your rents, check the rent review clause in your tenancy agreement. If you don’t have one, then it’s worth making sure you do when you next have tenants move into your property. Check out our assured shorthold tenancy agreement template if you’re unsure about rent review.
Government needs to “turbo boost” build-to-rent
Jeremy Blackburn, head of policy at the RICS, said that ministers deserved credit for the effort they were putting in to improve the state of housing in the UK. However, in his opinion build-to-rent needs a “turbo boost”.
With so many changes to the rental market over the last few years, Blackburn also warned that the government should be careful not to “dampen investment in buy-to-let overall.”
Are you expecting to raise rent this year? Let us know in the comments