Survey warns of new housing crisis

Figures in the latest RICS Lettings Survey warn of a new crisis of soaring rents, says the British Property Federation, trade body for developers, investors and advisers.

More people are being forced to rent because they cannot afford to buy. The RICS survey shows rising rents due to an inevitable slowdown in the buy-to-let market caused by the credit crunch.

Ian Fletcher, residential director for the BPF, said: "These figures highlight another impending housing crisis - soaring rents. The private rented sector has housed half-a-million people since 2000 and it's the most widely available source of affordable housing. If demand continues to rise while supply does not, those who can't buy or access social housing will have nowhere to go.

"There is therefore a desperate need to get more investment into rental housing. Large investors building new family homes specifically to let could be encouraged with minor planning and tax changes."