Lettings20th May 2010
The latest Lettings Survey from the Royal Institution of Chartered Surveyors (RICS) reveals that the supply of property to rent fell for the second consecutive quarter in the three months to January 2010.
Twenty-three per cent more chartered surveyors reported a fall rather than a rise in the number of new landlord instructions in the three months to January 2010, up from 18 per cent in the previous quarter.
Although the weather may have been a factor in this, it is more likely that the upturn in the housing market has tempted many of the accidental landlords away from the rental market, says RICS.
So could this mean an end to the falling values that have been a feature of the rental market since autumn 2008?
There were certainly fewer surveyors reporting declines in the latest quarter: the net balance of those reporting rising rather than falling rents was zero, an improvement on the five previous quarters of negative readings.
And a net balance of 33 per cent of surveyors believed that rents would rise over the coming quarter, up from 22 per cent in the previous report.
Surveyors were also positive about rental demand, with 16 per cent more respondents reporting a rise rather than a fall this quarter.
RICS spokesperson Jeremy Leaf commented: "The RICS housing survey has seen a steady increase in the number of new instructions coming on to the market over the past few months, whilst simultaneously we see with this survey that the number of properties available to rent has decreased.
"This is a clear sign that the accidental landlords are returning to the sales market.
"If demand remains strong, which it is likely to as many first-time buyers are still finding themselves priced out of the housing market, then rents should continue to rise as would be tenants compete for fewer properties."
View the complete RICS Lettings Survey January 2010
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