Shortage of supply in both the lettings and sales segments says RICS

February 9, 2017

The Royal Institution of Chartered Surveyors (RICS) today released their UK Residential Market Survey for January 2017 headlined ‘Market needs “turbo boost” as supply shortage continues’.

The RICS revealed that demand for rental properties continued to increase at the national level in the three months to January and projected rents would witness a cumulative increase of over 25% in the next five years. They stated that shortage of supply in both the lettings and sales segments continue to present a huge challenge for the market.

The RICS said that it expected house prices to rise across the UK over the next year, but that London would continue to be an exception and would see prices decline. Buy-to-let investment is anticipated to decline given the current policy landscape.

Simon Rubinsohn, RICS Chief Economist said: “The scale of the challenge Government faces as it announces its new approach to housing is clearly demonstrated in the results from our latest survey. Not only are the headline price and rent series pointing to further increases over the course of this year, but more significantly, the medium term view of RICS professionals working up and down the country is that both house prices and rents will over the medium term continue to grow at a faster pace than wages putting even greater pressure on affordability. Whether the measures announced can ease this this trend remains to be seen”.

Read the RICS UK Residential Market Survey for January 2017 in full click here

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Breaking Property News 9/4/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   Why Rightmove is making all the wrong moves   In a world reshaped by AI, incumbency is no longer protection. It is exposure. Thought Leadership By Andrew Stanton, CEO Proptech-PR Rightmove has long been the unassailable giant of UK property portals—a category-defining platform that, for years, operated…
Read More →
Breaking News

Six property firms expelled from redress scheme

Six property businesses have been expelled from The Property Ombudsman after failing to pay compensation awards. The expulsions followed a review by the scheme’s independent Compliance Committee, which agreed that each firm should be removed for breaching their membership obligations by not complying with Ombudsman decisions. The Property Ombudsman, which provides impartial dispute resolution for…
Read More →
Home and Living

Best garden renovations to increase property value this spring

With spring fast approaching and warmer weather finally in sight, now is the perfect time to step outside and give your garden the well-deserved TLC and refresh it needs after such a wet and dreary start to the year. Whether it’s refreshing planting beds, updating patio areas or rethinking your layout, investing time into your…
Read More →
Breaking News

Prime London property market stays firm

The latest Prime London Demand Index by London lettings and estate agent, Benham and Reeves, reveals that, despite broad economic uncertainty, buyer demand across London’s most prestigious neighbourhoods avoided a decline during the first quarter of 2026, with the likes of Chelsea, Battersea, Highgate, and Belgravia seeing quarterly demand increases of above 5%. The Prime…
Read More →
Breaking News

More first-time buyers enter the market in 2026

The latest research by Yopa has revealed that first-time buyer demand has strengthened during the first quarter of 2026, despite the supply of homes offering the benefit of a buying scheme remaining limited. Yopa analysed first-time buyer demand based on the proportion of homes listed under buying schemes* that have already sold subject to contract…
Read More →
Breaking News

Fall-throughs hit housing market for £1bn annually

The latest Fall-Through Index by the House Buyer Bureau has revealed that the number of fall-throughs in the UK fell by -25% in the final quarter of 2025, but the estimated total cost incurred still stood at £218.3m in those three months alone, pushing the total cost for the year to over £1bn. House Buyer…
Read More →