Residential rents in the West Midlands have risen by almost five per cent in the past year, according to the latest industry survey.
The increase comes as many would-be buyers continue to find themselves locked out of the sales market, the Royal Institution of Chartered Surveyors said.
Given the problems in the sales market, this trend looks set to continue as respondents predict rents to continue to grow by a further 4.9 per cent over the next year.
Richard Franklin of Edward Gallimore Estate Agents, RICS residential spokesperson for the West Midlands, said: “With shortage of stock and increased demand forcing rents upwards the issues of tenant default and arrears are becoming more common across the West Midlands. “Chartered surveyors are experiencing more enquiries about professional management services to counteract this trend.
“Demand is particularly strong for family housing at the expense of apartments and larger executive properties, where rental growth has been less.”
The upward march in rents is underpinned by a fall of good quality properties for tenants to move into, RICS said.
In the three months to July the amount of new properties coming on to the market fell, with 14 per cent more surveyors reporting a rise in new instructions coming onto the market, compared to 27 per cent in the last quarter.
Meanwhile, demand continues to grow in the area, as 18 per cent more respondents reported rises in interest from potential tenants.
The increase in demand has outpaced the supply.
With rental values increasing in the West Midlands, gross yields have continued to edge upwards during the early part of the year, with little change in the number of landlords in the region (4.3 per cent) opting to sell their properties at the end of the tenancy.
Across the country, the North West saw rents increase by the biggest margin with values growing by 6.9 percent, whereas surveyors in Wales reported that rents stayed at the same level over the last twelve months.