Tenant demand in the rental market continues to be positive, although the pace of growth has slowed compared to previous months. The net balance of +11% in August is lower than the +26% recorded in July, but it still reflects steady interest from renters.
The supply of rental properties remains sluggish, with new landlord instructions again seeing a downward trend. The net balance slipped to -21% from -9% in July.
The ongoing shortage of rental properties is expected to continue pushing rents higher. According to RICS, near-term rental price expectations point to a steady increase, with a net balance of +39% of survey respondents predicting that rents will increase in the coming months.
RICS Chief Economist Simon Rubinsohn said: “The latest RICS survey captures an improvement in sentiment over the past month in the wake of the modest decline in mortgage rates with buyer interest improving, albeit from a relatively low base, and stock levels edging up.
“However, anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done with uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming Budget keeping the mood in check.”
