Aug

BREAKING: Tenant demand for homes still rising despite gathering storm clouds

admin

The lettings market continues to boom while the property sales sector shows signs of weakening, the Royal Institution of Chartered Surveyors (RICS) has reported.

Its survey of member estate agents reveals that tenant demand continues to rise, evidenced by a net balance of +36% of respondents reporting an increase, part of the seasonally adjusted quarterly lettings dataset.

That said, although still firmly positive, RICS figures seem to have lost a bit of momentum when compared with readings of +62% and +50% recorded in the three months to January and April 2022 respectively.

Turning to supply of stock, a net balance of -8% of members reported a decline in new landlord instructions, identical to last quarter’s reading. Put these two factors together and rents are expected to continue to climb higher over in the near future by a net balance of +57% of survey participants, with all parts of the UK anticipated to see a further pick-up.

But while the private rental sector has yet to be impacted by the gathering economic clouds, it is beginning to touch the wider housing market.

The boom in property sales is beginning to fade with new buyer enquiries declining at a steady pace, the RICS reports says.

Living costs

Tarrant Parsons (pictured), RICS Senior Economist, says: “Amid a backdrop of sharply rising living costs, slowing economic growth and higher interest rates, it is little surprise that housing market activity is now losing some momentum.

“With monetary policy set to be tightened further over the coming months, sales expectations point to a further softening in transaction volumes going forward.

“Nevertheless, with respect to house prices, limited supply available is still seen as a crucial factor underpinning the market.

“Although house price growth is likely to continue to ease, respondents still anticipate prices will be modestly higher than current levels in a year’s time.

Read the report in full.

View Full Article: BREAKING: Tenant demand for homes still rising despite gathering storm clouds