Why generation rent is facing fresh housing misery

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Rents across Britain are predicted to soar at much faster rates than house prices, according to experts.
Agents at property firm Savills said that over the next five years, rents will rise by a massive 19 per cent, while property prices will increase by just 13 per cent.
In London, where housing demand is critical, that picture will be even more pronounced. Rents in the capital are predicted to go up by nearly a quarter, with house prices there going up by nearly 11 per cent.
Analysts said that economic uncertainty caused by Brexit as well as weak consumer confidence would lead to a sharp increase in the cost of renting a home.
Pressure on rental prices is expected to increase as Government measures bringing into force tough tax measures for landlords could deter buy-to-let investors from making any new purchases.
Home owners are not expected to see any value added to their property at all during 2017 as the UK moves towards invoking Article 50 to start an exit from the EU.
During 2017, says Savills, average property prices will not go up at all. In some areas, prices will actually fall, with a drop of up to 2.5 per cent in both Scotland and the North East.
However, there is good news for property owners within the North, which is set to start to “outperform” other parts of the country by 2021.
By the end of five years, both of those regions are expected to see increases of nine per cent.
East Anglia is predicted to see the best performing house price growth within the next five years, with property prices rising by 19 per cent. In the South East as a whole, prices will be 17 per cent higher.

Meanwhile, demand for rental prices will rise, said Savills experts, as those trying to get on the property ladder struggle with issues of affordability.
Individuals and couples attempting to save up enough money to put down a deposit on their first home are set to see their income squeezed by rising rents. Coupled with predicted rises in inflation, which will increase food costs, that could put their own home out of their reach.
Lucian Cook, Savills UK head of residential research, said: “What is clear is that the housing market does not like political and economic uncertainty and this points to a lower growth, lower transaction market across the board.”

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