Rental cost will continue to ‘rise sharply’, rental agents warn
- Real estate agents expect the cost of rent to rise considerably in the coming months
- Demand for rental housing continues to rise while available supply is declining
There is no end in sight to rising rents despite costs reaching record levels, leasing agents have warned.
The latest survey of agents from the Royal Institution of Chartered Surveyors found demand for tenants increased in the three months to July.
Of those surveyed, 54 percent of agents said they had seen rents increase during that period.
It’s the strongest quarterly rebound in rental demand since early last year.
Separate research follows showing that the average cost of rent in England has hit a record £1,367 per month per property.
The outlook for the rental market has been described as “concerning” by rental experts.
Rics’ Simon Rubinsohn described the outlook for the rental market as “worrying”.
He said: “Demand shows no sign of abating, supply remains tight and that means rents are likely to continue to rise sharply despite the cost of living crisis.”
In the Rics survey, 54% of agents said they had seen rents increase in the three months to July.
As the demand continues to increase, the supply of properties available to rent continues to decrease.
Rics said the number of homeowners instructing agents is down yet again, with 30 percent of agents saying they’ve seen a decrease, compared with a 24 percent decrease the month before.
And a net balance of 63 percent of those surveyed expected rental prices to increase in the next three months.
It is an increase from 55 percent in the previous quarter and marks a record.
Rics said instructions from owners have eased, with the latest net balance falling to 30%.
Will Ravenhill, a letting agent in Leicester, said: ‘The rental market is broken. Many buy-to-let homeowners are leaving the market.
“Those who are left with buy-to-let mortgages are raising rents to ridiculous levels to meet their mortgage covenants.”
Kevin Burt-Gray, a lettings agent in Cambridge, said: “Shortages of stock and a surplus of quality tenants keep the private lettings sector busy, with multiple applications being received on most properties within days of their opening. come out.” market.’
And David Martindale, a rental agent in Wakefield, added: “There continues to be good demand for rental properties and rents continue to rise.”
Stock shortages and a surplus of quality tenants keep the private rental sector busy
A net balance of 63% of respondents expected rental prices to increase in the next three months
It follows a separate investigation from Goodlord earlier this month that says rents in England have hit a record.
He said rents had skyrocketed 19 percent in a month, with prices rising because of students looking for housing for the new college term.
The fiercely competitive rental market has seen the average cost of rent in England reach £1,367 per month per property.
It is the highest level ever recorded by the index and is 9.4 per cent higher than the previous record set in September last year, at £1,249.
Harriet Scanlan, of Richmond estate agency Antony Roberts, explained: ‘We’re still riding on the momentum of a very strong rental market.
“Earlier this week, we posted three properties for rent, and within two days, we received multiple offers from prospective tenants at each property.
‘Two of those owners received much more than the asking price at best and the final offer point.
“We don’t like having to disappoint unsuccessful applicants and understand the difficulties of trying to find a new rental home in this highly competitive market.”