Mass migration into the UK by Polish and
other eastern European workers is driving the cost of renting
property to record levels, the Royal Institution of Chartered
Surveyors will reveal this week.
The institution's quarterly survey of residential lettings is
expected to show that demand for flats and shared housing has
allowed landlords to increase rents on properties.
Milan Khatri, the chief economist of RICS, said: "Tenant
demand is really strong and there are signs of a further
pick- up. It is not the only reason, but a lot of this is
due to the
arrival of migrant workers."
Migrant workers rarely have the means or the inclination to buy
property, living instead in multiple occupancy dwellings.
Although the influx of migrant labour to Britain since the
European Union expanded in May 2004 has been felt across the
country, the majority of new workers have settled in the
-capital.
In its last survey, RICS found that tenant demand in London for
the three months to April 2006 was twice the historical average,
with rents in the city rising at the fastest pace for five
years.
The demand for rental accommodation is also being driven by
growing numbers of students and a rising divorce rate. These
developments are leading to a second boom in buy-to-let.
According to the Council of Mortgage Lenders, Britain's
banks and building societies arranged a record-breaking £17.5bn
on more than 150,000 buy-to-let loans in the first half of
2006.
Michael Coogan, the CML's director general, said: "The
buy-to-let market remains robust, underpinned by strong rental
demand. The rental market remains sound and looks set to
continue to offer good long-term prospects for astute investors."
Source:http://www.telegraph.co.uk
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