Cost of renting is predicted to increase

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DEMAND for rental properties in the North East still outstrips supply, new figures showed today.

Data for the three months to July has been revealed in the latest RICS Residential Lettings Survey.

A main cause of demand remains would-be buyers who have moved to the rental market after struggling to find mortgage finance, or first-time buyers unable to find deposits.

As a result, 22 per cent more chartered surveyors in the North East reported a rise in demand for rental property than a fall.

Jennifer Welch of RICS North said: “The combination of strong tenant demand and a limited stock of good quality properties on offer is pushing rents ever higher across much of the country.

“With mortgage finance for first-time buyers likely to remain in short supply for some time to come, this imbalance is set to persist.

“The inevitable outcome is that rents will continue to increase.”