According to Savills, the two issues of mortgage regulation and interest rates will impact on people's ability to access the housing market. Despite a series of government policies focused on boosting housebuilding and homeownership, they expect levels of demand for private rented sector accommodation to continue to rise.

They say the recent stamp duty changes and the restriction in the tax relief given to mortgaged buy to let investors are likely to limit the ability of this group to extend their portfolios to meet this demand. This may add to the upward pressure on private rents. It is also likely to result in a shift in the focus of this type of investor towards higher yielding sectors of the market, though not those which are heavily dependent on welfare payments.

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