Rents are expected to rise by 16% over the next 5 years

In its annual five year forecast, Savills say rental affordability is already so stretched for many households that rental growth will in effect be held back by simple affordability.

The agency reports that households in the private rented sector already pay more as a percentage of their income than those living in other tenures, with many reliant on housing benefit or living in larger household groups to make the tenure more affordable.

It forecasts that the traditional rental demographic of sharers and young professionals looks set to continue growing; as the cost of buying prevents people from making the move into homeownership. This is supported by further research showing the rental market looks set to benefit from first time buyers currently needing on average a minimum household income of £50,000 to purchase a house in the UK.

Savills also state that in some high demand/low supply rental markets, more people may live in larger household groups – flat sharing is no longer an option but a necessity for many.

David Gascoyne, Sales and Lettings Manager at Residential Estates said 'It is becoming increasingly common for young professions to combine their spending power and are therefore living together in larger properties. Rental growth over the next few years is likely to be strongest for properties with two or more bedrooms.'