The Money Stop

The number of people renting in the UK has soared in recent months as house prices continue to rise.

Figures from the Royal Institution of Chartered Surveyors (Rics) show that in the three months leading to January, demand for rented accommodation accelerated at its fastest pace for nine years.

Both flats and houses saw an increase in demand, with houses seeing the greatest change. Rics puts this down to increasing household incomes, which allow people to rent larger properties.

The organisation also points to strong economic activity, good employment conditions and a great deal of migration from eastern Europe as reasons behind the surge in rental applications.

However, it also highlights that concerns over affordability in the mortgage market have had an impact.

“With house prices still rising, the rental market will remain a ‘property purgatory’ for many would-be buyers unless accessibility and affordability conditions improve significantly,” said Jeremy Leaf from Rics.

“However, tenant demand will continue to rise as long as economic conditions remain strong.”

Many people find renting is a great way begin an independent life, however, it is worth considering how much you can afford to spend on rent if you plan on saving up for deposit.

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