Migrants are pushing up rental incomes

30/08/2006 - Polish and eastern European workers are said to be driving up the cost of renting

The mass migration in to the UK of Polish and eastern Europeans is said to be driving the cost of renting property to record levels. The Royal Institution of Chartered Surveyors has revealed in its quarterly survey of residential lettings that the demand for flats and shared housing has allowed landlords to increase rents on properties. The majority of workers have settled in London and the RICS found that tenant demand in the capital 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 property has been pushed up further by growing numbers of students and a rising divorce rate. British banks and buildings societies arranged a record breaking £17.5bn on more than 150,000 buy to let loans in the first half of 2006.

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