Rental prices set to rise over 25%
According to the Royal Institution of Chartered Surveyors’ (RICS) latest survey, rents are predicted to rise over 25% per cent in the next five years, whilst house prices over the same period are projected to increase by around 18%.
This April, the changes to mortgage interest tax relief will see it reduced to the base income tax rate (20%) whilst the increase in stamp duty on second homes looks likely to drive rental prices up.
RICS has voiced concerns that these changes will also have an adverse effect on investment levels in the buy-to-let sector. Over the past few months the market has seen a number of buy-to-let investors sell up, due to the stamp duty increase last year and other tax changes, along with tougher mortgage rules.
Joseph Hall, Associate Partner – Head of Business Development, Lettings, comments: “In our experience tenant demand for rental properties has continued to increase throughout Essex and Suffolk. This is particularly true across areas in our region which have a reasonable commuting distance to London.”
Fenn Wright’s expert letting specialists offer advice on all aspects of the rental market, to landlords and tenants alike. For further information, please contact Joseph Hall.