Rent costs are expected to rise to record highs in 2013, according to the Halifax, and increase by 18% over the next five years.
The growth of the rental market, which has been driven by the phenomenon dubbed ‘generation rent’, shows no signs of stopping as more people turn towards renting properties rather than buying.
Young adults in particular will rely on renting property, with the majority of first-time renters being in their late 20’s and early 30’s.
A lack of job opportunities, student debt and the rising cost of house deposits are seen as the major factors in causing this trend.
The rise in rental costs will not come as a surprise to many, with a survey conducted by Halifax showing that 66% of people expect rents to rise in 2013.
House prices are also predicted to grow, with 38% of people expecting the value of the average property to rise in 2013, compared to 18% who predict a decline.