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Tenants expecting rental prices to increase in 2010

Their views reflect the RICS Rental Market Report which found that surveyors expect rental prices will go up in 2010 due to increasing demand and a reversal of the oversupply witnessed over the past year.

The Rightmove Consumer Confidence Survey also found that 58% of people who will rent in 2010 would prefer to purchase a property but can’t afford to buy, with the highest proportion of this group found in the South East where 65% of renters are in this position. A further 28% of those who will be renting next year would like to buy but at a later date, and just 12% wish to rent long-term.

Miles Shipside, commercial director of Rightmove, said: "With sales prices now positive year-on-year across most of the country and low stock levels driving increased up values in many areas, 2010 may see many landlords cash-in by taking their properties off the rental market and put up for sale.

"The implications of this on the rental market are two-fold. First, a limit in supply will exert further upwards pressure on rental prices. And secondly, demand for rental properties looks set to remain buoyant while property sales prices stay out of the reach of those tenants who would prefer to buy. On top of this, restrictive mortgage lending criteria looks set to keep many would-be buyers trapped in rented accommodation."

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