Rents 'will continue to increase'

26th January 2012

More people may want to think about converting their large properties into letting accommodation to take advantage of wider housing market conditions in the UK.

This could mean that the demand for associated financial products such as freeholders insurance may increase during the course of the year.

Peter Bolton King, chief executive at the National Federation of Property Professionals, said that the traditional structure of the property ladder is changing due to wider economic problems and people are staying in rented accommodation for a longer period than they have in the past.

"Generally our members report in a lot of areas that there is a real shortage of property," he stated.

Mr Bolton King said that many people have little option but to seek rental properties in the foreseeable future, as they cannot afford to get a mortgage.

He explained that this was subsequently meaning that supply was falling, as people increased the length of their tenancy.

This, Mr Bolton King stated, was allowing landlords to charge higher and higher rents, as they could be sure of demand.

"All of the research that has been done shows that over the next ten-plus years, the growth in the private rented sector is going to continue," said the chief executive.

However, he warned those thinking about applying for freehold insurance and making changes to their property to be aware that there are regional fluctuations.

The market is "all over the place" with some areas – particularly in city centres – seeing a surplus of accommodation, Mr Bolton King added. 

This comes after Citizens Advice urged landlords to make improvements to their property to help the growing number of tenants who are struggling to heat less efficient accommodation.

According to the charity, 680,000 renters who live in the coldest homes need to pay an extra £488 in gas and electricity every year.

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