Adverse Mortgages UK

UK rental growth has risen at its fastest pace in eight years on the back of the influx of immigrants from new EU countries, according to a new survey by the Royal Institution of Chartered Surveyors (Rics).

Rics attributed the high rental growth to immigration from EU accession countries and economic prosperity, but warned of the difficulties facing first time buyers.

The organisation said 30 per cent more chartered surveyors reported a rise in rental levels than a fall over the three months to July, up from 20 per cent in the previous quarter and representing the biggest increase since 1998, when Rics began the survey.

"Economic prosperity and population migration have increased rental demand, pushing up rents and making conditions better for property investors," said RICS spokesperson Jeremy Leaf.

"However, first-time buyers will find it hard to enter the housing market with higher rents making it difficult to save sufficient sums for a deposit."

The survey revealed that surveyors expect the upward trend will continue, with 28 per cent reporting confidence in rental increases compared to 24 per cent in the previous three months.


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