The results from the latest RICS UK Residential Lettings Survey published last week (9^th June 2011)  highlights the potential for increasing pressures on local authorities housing supply.

The survey found that strong tenant demand across the private rented sector coupled with supply constraints is forcing higher rents.   The survey also reveals that rents in certain areas of the UK have risen so sharply that previously affordable homes are now unattainable to many; forcing increasing numbers of renters out of the market. 

John Taylor, Chief Executive Officer of Orchard & Shipman plc said;

These latest figures amplify the housing crisis in the UK.  Not only are Local Authorities likely to see homeless representations increasing, but accessing the private rented sector will also become a bigger challenge for council’s, this is particularly the case in areas where Local Housing Allowance (LHA) rates were capped back in April at the 30^th percentile of broad market rents. 

London Borough authorities are likely to be the hardest hit as the survey predicts the highest rise in rents will be seen in the capital, with the Midlands, the South East and the North closely following.

The survey can be viewed in full at; http://www.rics.org/site/scripts/download_info.aspxdownloadID=7403&fileID=9766

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