Optimism and tight supply fuel rentals boom, according to surveyors

The latest sentiment survey from the Royal Institution of Chartered Surveyors makes welcome reading for most landlords.

RICS deals only with broad expressions of market sentiment from its member agents, so gives little specific market ‘snapshot’ data - however, it says a net balance of 60 per cent of its survey respondents saw activity grow in the lettings sector in the past three months.

This is up from a net balance of just 14 per cent in January.

RICS says the switch around reflects the general improvement in the Covid situation across the UK since then, as well as the recent easing in lockdown restrictions. 

On top of that, there’s tight supply as new landlord instructions were more or less stagnant over the latest survey period.

Near term rental growth expectations amongst agents in RICS have also risen, returning a net balance of 55 per cent in April, compared to only 15 per cent over the previous quarter. 

“Over the next 12 months, respondents envisage rents rising by three per cent on average across the UK. Although near term expectations remain marginally negative across London, the 12 month view on rents moved slightly into positive territory for the first time since early 2020” RICS says.

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