Sheffield rent rises predicted to outstrip increase in house prices

Will rents rise faster than house prices in Sheffield?
Will rents rise faster than house prices in Sheffield?
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Rent in Sheffield will rise faster than house prices in coming years, it has been predicted.

Sheffield estate agent Maz Iqbal, who writes a property blog, expects rents in the city to rise by an average of 22 per cent over the next five years.

During the same period, he believes property values will increase by 16 per cent.

Mr Iqbal, director of Sheffield Residential Estate Agents & Letting Agents, says this would reverse the trend in recent years, which have seen house prices shoot up at more than double the rate of rents.

In the last five years, he says, house prices have risen by 20.9 per cent, compared with 9.1 per cent for rents.

But he says more tenants are looking for homes and more landlords are expected to sell their properties, reducing availability and pushing rents up.

"In fact, talking to fellow property professionals in Sheffield, there appears to be privation and shortage of new rental properties coming on to the Sheffield lettings market," he said, writing on the Sheffield Property Blog.

He believes changes to taxes for buy-to-let properties and a ban on letting agent fees will both contribute to rising rents, with the costs being passed on to tenants.

"All I would say to Theresa May and Philip Hammond is that they must be wary about indicating both red and green lights at the same time to the private rented sector. They can’t expect the armies of small private landlords to continue to house around a fifth of the population and then tax the hell out of them," he said.

He forecasts the average monthly rent for a Sheffield property will rise from £764 now to £932 in five years' time.

Mr Iqbal added that he expects budgetary challenges to 'temper' house price inflation over the next few years, despite the number of properties coming on to the market being 'close to historic lows'.