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Supply and demand for rental properties in the UK continues to be uneven.
Tenant demand in the UK’s private rented property sector is continuing to grow at a faster pace than new property becomes available, according to the latest Residential Lettings Survey from the Royal Institution of Chartered Surveyors (RICS).
The organisation says that since mid 2009 rent expectations have remained positive and it predicts that on average, rents are expected to rise by close to 2% over the next 12 months.
Some reports have suggested that rents are beginning to stabilise in parts of the country, however RICS points out that its measure of sentiment tells a rather different story with rents projected to continue rising in all regions to a greater or lesser extent.
The survey was conducted ahead of the Budget announcement introducing the Help to Buy initiative and RICS points out that it not only extended the existing shared equity scheme for new build property but also held out the promise of a more all encompassing mortgage guarantee to take effect from the beginning of next year.
Simon Rubinsohn, RICS chief economist said: “While the rental market remains buoyant at present, it will be interesting to see whether Help to Buy begins to encourage some tenants back to the owner occupier market as more higher loan to value mortgages become available. Even if that proves to be the case, however, it is improbable that we will see much evidence of this before 2014”.
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