It is predicted that rents will go up by 19% until 2021, but house prices will only increase by 13%. Post-Brexit economic jitters and a weaker consumer sentiment are being blamed.
The research also found that house prices in the north will begin to outperform at the end of the five-year period, but demand for rental properties will increase as first-time buyers struggle with affordability.
In personal finance, the personal protection insurance mis-selling story rumbles on as the Financial Ombudsman Service says that PPI still dominates its workload.
More than 40,000 complaints were received by the ombudsman in the three months to September after banks rejected their customers’ claims for compensation. Fifty-seven per cent of those complaints were upheld in favour of the customers.
The second most-complained about financial product was packaged bank accounts, but there were only 5,317 complaints during the quarter.
In pension news, the Pensions Regulator has rejected an offer of a reported £30million by Sir Phillip Green to plug the £571million deficit in the BHS pension scheme. The deficit emerged after the collapse of the retailer in April this year.
It has also been reported that the regulator has issued enforcement notices against Sir Phillip, his group of retailers, as well as Dominic Chappell, who as the owner of BHS when it went into administration.
This follows an investigation by the regulator into the collapse of BHS and its pension fund, including examining over 100,000 documents.
In banking, a decision made by the Competition & Markets Authority (CMA) not to cap excessive overdraft charges could be overturned by the Financial Conduct Authority (FCA).
In a report on bank accounts published in August, the CMA decided against a cap on charges. Now the FCA has announced that it is to look the charges in detail and said its inquiry would look at a possible compulsory limit on overdraft charges.
The FCA said it would take action to improve competition in the current account market and that overdraft charges would be a priority.