Rent rises ahead as landlords pull out of UK housing, says Rics


Publicans are likely to pull out of the UK housing sector in the coming year owing to programme changes, surveyors say.

Nearly two-thirds of surveyors asked by their barter body said more landlords would exit the market than be coextensive with it in the coming year.

Investors have been hit by changes such as a make duty surcharge.

As a result, private rent rises were meet to outpace house prices in the next five years, the Royal Formation of Chartered Surveyors (RICS) found.

Paul Bagust, from RICS, tell ofed the findings as «concerning».

«A functioning private rented sector is crucial to a in the pink housing market,» he said.

Landlords now face a 3% stamp onus surcharge levied on newly-purchased second and subsequent properties. They also presumption a gradual loss of tax relief on mortgage interest payments.

Some of the switches were a response to concerns from first-time buyers that they were regularly outbid by landladies.

Yet, as a result, RICS’ members predicted that rents will prosper at 3% a year for the next five years compared with an annual 2% advance in house prices.

Demand ‘stalls’

On the UK housing market in general, the RICS contemplate found that interest from property buyers had been invariable for nine months.

Buyer enquiries and sales were little transformed in August compared to July, continuing the recent trend.

However, it develop that house prices were rising in many areas of the sticks including Northern Ireland, Scotland, the North West of England, and the South West of England.

Surveyors vaticinated that house price falls in central London would carry on with for the next three months.

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