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Tenants could see a 25% increase in their rent, surveyors have warne

View profile for Spencer Davis
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According to the Royal Institution of Chartered Surveyors (Rics) the cost of renting could rise faster than house prices over the next five years.

Simon Rubinsohn, Rics chief economist, blamed government moves to discourage buy-to-let landlords. "In the long run I'm concerned that rents might increase rapidly," he said. However, he predicted that house prices would continue to rise faster than rents in 2016.

According to Rics estimates, house prices will increase by 6% next year, and rents by 3%.

Changing times ahead for landlords

From 2017, landlords will be able to claim less tax relief on their profits. And from April 2016, they will have to pay a higher rate of stamp duty.

"Critically our principal concern with the measures announced by the government is that they are overly focused on promoting home ownership, at the expense of other tenures," said Mr Rubinsohn.

"Discouraging buy-to-let could see private rents take even more of the strain."

However, he welcomed the government plans to build more homes for sale, saying that could help ease house price growth.

Rics predicts that East Anglia is the region likely to see the fastest growth in house prices in 2016, at 8%, while the West Midlands and the South East will also outperform the market.

However, the North East of England is expected to see the slowest growth, at 3%.

This is not legal advice; it is intended to provide information of general interest about current legal issues.

If you are considering a buying a property to rent out anywhere in England or Wales and would like to receive a full breakdown of all known legal cost, please contact our New Business Team on 01245 343980 or newbusiness@gepp.co.uk