Increased tenant demand and low levels of rental property coming onto the market pushed rents higher in the three months to April, according to the latest Residential Lettings Survey from the Royal Institution of Chartered Surveyors.
Overall, 42% more surveyors reported rents rose rather than fell in the three months to April, up from 40% in the previous quarter, according to the survey published today (Thursday June 09). Although rents increased across Great Britain, it was London and the South East which saw the most notable increases.
Comments from surveyors reveal that rents in some areas have now risen so sharply that previously affordable homes are now unattainable to many, as an increasing number of renters are priced out of the market.
Despite an upturn in new instructions, supply to the market still remains unable to keep up with demand. Tenants are staying longer, resulting in less availability, while fewer landlords are selling their properties at the end of a tenancy. Just 2.8% of landlords sold property in the three months to April, down from 4%.
Looking ahead, the overall rental outlook remains strong, with 33% more surveyors expecting rents to rise rather than fall. Expectations for rental prices were highest in London, followed by the Midlands, the South East and the North.Source: PropertyWire