Sentiment In The Lettings Market
Recent findings from the RICS (Royal Institution of Chartered Surveyors) March survey provide an insight into the current state of the UK's lettings market. With an increase in tenant demand and a subsequent rise in rent expectations, the mood among agents is positive, despite a decrease in landlord instructions.
Tenant Demand Continues to Soar
Tenant demand has been on a consistent upward trend, showing a net balance of +36%. Whether driven by changes in employment, relocation, or personal circumstances, more tenants are actively seeking rental properties. This increase in demand brings both opportunities and challenges for letting agents and landlords.
Landlord Instructions Decline
Contrary to tenant demand, landlord instructions have seen a fall, with a net balance of -25%. This decrease might be a result of various factors, including regulatory changes, economic uncertainty, or shifting investment priorities. Whatever the reason, this reduction in available properties is contributing to a market imbalance.
Upward Pressure on Rents
The imbalance between tenant demand and landlord supply is putting upward pressure on rents. A significant +47% of agents report positive rent expectations, with rents expected to increase by just under 3% over the next 12 months. This rise in rent is reflective of the market dynamics and could impact affordability for some tenants.
Current Rental Figures
According to Dataloft Rental Market Analytics, the average monthly rent stands at £818 in England (excluding London) and £1,712 in Greater London. These figures provide a snapshot of the current rental landscape and are likely to be closely monitored by both tenants and landlords in the coming months.
The RICS March survey paints an optimistic picture for the UK's lettings market, despite the ongoing challenges. The robust tenant demand and upward rent expectations indicate a strong market but also emphasize the importance of maintaining a balance between supply and demand.
Letting agents, landlords, and tenants will need to navigate these trends carefully to ensure that the market continues to thrive while serving the needs and preferences of all involved parties.
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