Rents in UK expected to continue to rise over next 5 years according to RICS
August 9, 2018
The latest RICS UK Residential Market Survey – July 2018 released today headlines ‘Rents to continue to rise, as supply of new property to let drops again’.
The survey highlights the continued reduction of new property being put on the market in the lettings sector with 22% more respondents seeing a fall rather than rise in New Landlord Instructions. This is the eighth consecutive quarter in which this indicator has recorded a negative number.
The surevey reveals that the sales market remains broadly flat at the national level, little different from that reported in June.
Simon Rubinsohn, RICS Chief Economist said:
“The impact of recent and ongoing tax changes is clearly having a material impact on the Buy to Let sector as intended. The risk, as we have highlighted previously, is that a reduced pipeline of supply will gradually feed through into higher rents in the absence of either a significant uplift in the Build to Rent programme or government funded social housing. At the present time, there is little evidence that either is likely to make up the shortfall. This augers ill for those many households for whom owner occupation is either out of reach financially or just not a suitable tenure.”
Read the latest RICS UK Residential Market Survey – July 2018 in full click here.
You May Also Enjoy
Highest ever price gap between first-time buyer and second-stepper home
Latest Rightmove data shows that the price gap between a typical first-time buyer home and a second-stepper home is at its highest ever, increasing cost pressures on those looking to trade up: The average asking price for a 3-4 bedroom, typical mid-market second-stepper home is 52% more than a 0-2 bedroom, typical first-time buyer home…
Read More 
Mortgage Rates and Human Behaviour: Why Small Changes Create Big Reactions
By Sarah Thompson, Group Financial Services Director, Mortgage Scout Mortgage rates have returned to the headlines in recent weeks, with some lenders pushing products back above 5%. Renewed market volatility has been driven in part by global uncertainty, including the conflict in the Middle East and its impact on energy markets and investor confidence. Yet…
Read More 
Nearly six in ten UK property purchases trigger AML red flags
Nearly six in ten UK property purchases now require further scrutiny under anti-money laundering (AML) rules, according to new data from client due diligence platform Thirdfort. Analysis of more than 415,000 completed Source of Funds (SoF) checks found that 57.7% of transactions contained at least one red flag, with an average of two flags per…
Read More Vanishing act of sub-4% fixed rate mortgages
A cut to Bank of England Base Rate (BBR) looks increasingly unlikely, with the upheaval in mortgage re-pricing leading to a vanishing act of sub-4% fixed mortgages, according to Moneyfactscompare.co.uk analysis. Mortgage market analysis The pool of lenders offering a sub-4% fixed rate deal has taken a significant blow. All of the biggest banks, namely…
Read More 
Government’s Home Buying and Selling Reform
Will the Government’s Home Buying and Selling Reform Consultation Increase or decrease the speed at which the market moves? Kevin Shaw, National Sales Managing Director, LRG The government’s consultation on Home Buying and Selling Reform is a step in the right direction. It recognises what every estate agent and conveyancer already knows: property sales take…
Read More 
The Draft Leasehold and Commonhold Reform Bill
Content and clarification Comment from the Association of Leasehold Enfranchisement Practitioners (ALEP) By Shabnam Ali-Khan – Partner, Russell-Cooke Following the rushed Royal Assent of the Leasehold and Freehold Reform Act 2024, further controversy has arisen. In the King’s Speech on 17 July, the new Leasehold and Commonhold Reform Bill was announced, but the full details…
Read More