THE Royal Institution of Chartered Surveyors (RICS) predicts private rents as well as house prices will rocket over the next five years.

The forecast comes in response to the Chancellor’s autumn statement when he announced an increase in buy-to-let stamp duty and a cut in tax relief for private landlords.

Sentinel Housing Association chief executive Mark Perry said: “This is yet another blow for people looking for a home.”

“These changes make the buy-to-let proposition less profitable for private landlords and increasing their rents may be the only way to make the numbers stack up.

“It’s great the Government have put building new homes at top of their agenda, but it’s not much help if people can’t afford to live in them.

RICS chief economist Simon Rubinsohn has suggested private rents could rise by 25 per cent over the next five years.

And the imposed cut in sub market rents over the same period could well lead to fewer affordable rental homes being built by housing associations.