(Bloomberg) -- The cost of renting in the UK is likely to soar further in the coming months, deepening the cost of living crisis and heaping more pain on those hoping to buy their first property.

A survey by the Royal Institution of Chartered Surveyors found that rents are expected to keep increasing along with demand from tenants and a shortage as the supply of new properties dries up. That jump would follow a surge in prices that pushed rents to their quickest gains since 2016.

The higher cost of renting is stretching budgets and making it harder for younger people to get onto the housing ladder after a post-pandemic boom in prices. The surge is worsening affordability for consumers already coping with the highest inflation in four decades.

Read More: Spiraling London Room Rents Exacerbate Cost of Living Squeeze

One solution to the housing crisis, proposed by economist Gerard Lyons in a Policy Exchange paper this week, is to give greater consideration to rental commitments in assessing whether potential borrowers can afford mortgages payments.

 

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