Rents to go up more than 20% in five years, surveyors warn

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Rents are expected to jump by more than a fifth over the next five years, according to surveyors.

The Royal Institution of Chartered Surveyors (Rics) warned those on lower incomes in the rental sector are set to face further financial difficulties, with rental prices expected to increase by over 20% across the next five years.

House prices are projected to increase at a slightly slower rate of 18% over the same period, according to the predictions from chartered surveyors.

The survey also found shortages of available properties to rent are continuing to grow, with tenant demand having outweighed the number of new properties coming onto the market for more than three years - and by an increasing margin.

Rics' survey also suggested that 52% of private landlords would consider renting properties to homeless people or those on housing benefits if the Government provided guarantees for both deposits and rent.

Chief executive of Rics Sean Tompkins said: "The housing market is falling increasingly out of step with the majority of household incomes. In the current climate, it can be hard enough for young professionals to make ends meet.

"But for those on benefits, the pressures may be insurmountable."

Rics has teamed up with charity Crisis to call for further support for vulnerable tenants.

Crisis chief executive Jon Sparkes said: "This survey highlights the uphill battle many homeless people face when trying to enter the private rented sector."

A Department for Communities and Local Government (DCLG) spokesman said: "This Government is determined to make sure that we have a private rented sector that better meets the needs of both tenants and landlords.

"That's why our housing white paper makes clear how we'll build more homes for rent and make sure renting is affordable for ordinary working families.

"We're also banning letting fees, driving the worst landlords out of the market and promoting longer tenancies on new rental properties."