Out of balance: Huge number of renters as rental stoc...

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09 September 2021

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Out of balance: Huge number of renters as rental stock still very limited

The latest rental market snapshot by the Royal Institution of Chartered Surveyors suggests supply and demand in the lettings sector still out of kilter.

RICS says tenant demand for homes to rent accelerated in August, with a net balance of 66 per cent of its survey respondents reporting a pick-up in enquires.

This was up from 58 per cent the previous month.

However, there’s been a continuing decline in landlord instructions fuelled expectations among survey respondents - net balance of 64 per cent say that they expect rents will go up over the next three months given this imbalance between supply and demand.

And in a surprise move, RICS has also said that the stamp duty holiday, which goes on until the end of this month in a tapered form, should never have been extended from its original length.

The statement comes from Bradley Tully, RICS’ senior public affairs officer, who says: “RICS was supportive of the stamp duty holiday as a response to unique market circumstances last year during the height of the pandemic, though the scope of the holiday was arguably broader than we had anticipated and it should have been allowed to expire as originally intended.

“Over the long-term, RICS believes that an overhaul of stamp duty land tax should ultimately be delivered. Indeed, earlier this year the House of Commons Treasury Select Committee recommended that reforming stamp duty should be a priority for the government in their report, ‘Tax After Coronavirus’.

“We would urge the government to undertake a full-scale review of the current stamp duty land tax system to assess future ideal outcomes in terms of factors such as revenue generation and housing market fluidity. Housing affordability for first-time buyers and key workers should remain a crucial factor when considering access to the market too.”

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