Attaining a spot on the first rung of the property ladder has become more and more difficult every year. Rising house prices, slow wage growth, and rising inflation have created hurdles for every age group and especially young, first time buyers. Those who still choose to leave the shelter and security of mum and dad are faced with paying a rental fee each month. Recent research indicates this group is in for a rude awakening next year.

According to recent research conducted by the Association of Residential Letting Agents, up to 60% of agents believe rent cost will increase next year. This is in hard contrast to under 20% of agents who see rents decreasing next year.

More than 6 in 10 agents believe the supply of rental properties will fall next year. More than 50% of those surveyed believe demand will increase next year.

Rental property is a necessary component of property available to call home when property for purchase does not suit a buyer. Rental property is a must for many who are unable to afford the cost of a down payment on a property or for those in search of a property which will serve as a temporary stop on their way to the first rung.

National Association of Estate Agents chief Mark Hayward commented on the latest data, saying: “It’s been a big year for the housing market, with the Government pledging to improve the house-buying process, and stamp duty relief for first time buyers coming into effect. However, looking ahead to next year, more than half of our members don’t think the first time tax relief will have a real impact on the number of sales being made to the group.”

Hayward added: “Further, agents expect supply to remain the same but demand to grow which sounds like bad news, but if we can improve the process of buying a property, we’ll be making vast improvements to the sector which will ultimately make it easier and provide more certainty for first time buyers.”