The rental market continues to race huge structural problems including low supply, high demand and rising rents, the latest housing market survey by RICS has revealed.
Its surveyors reported that last month tenant demand continues to rise at a ‘solid pace’ including a significant number of estate agents taking part in the survey reporting noting more enquiries from prospective tenants.
Set against this, RICS says landlord instructions to market properties dropped again last month and, given this mismatch of supply and demand, rents are expected to rise across the UK even more in the coming months, agents reported.
Rents are expected to rise by 4% on average nationally over the next 12 months, the report reveals.
Chris Baker of London firm McDowall’s, says: “The lettings market is suffering from a continued lack of supply with tenants staying far longer in their homes.
“Some experienced landlords are keeping rents steady, preferring to allow good quality tenants to remain in their homes.”
John Chappell of Skegness firm, Chappell & Co, says: “Despite growing demand from prospective tenants, our landlords have all instructed us to hold back on rent reviews until at least Spring 2023, to see what effect the current crisis has on tenants’ ability to afford their rent this winter.
“More landlords are selling up due to uncertainty in the market.”
Simon Rubinsohn (pictured), Chief Economist at RICS, adds: “The imbalance between demand and supply still appears unusually extended leading to rent expectations in the survey remaining at elevated levels and it is difficult to see this changing anytime soon in the current environment.”
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