The Government's housing policies are coming home to roost as tenant demand continues to soar but the number of landlords advertising new properties to rent plummets, it has been revealed.
RICS says that during June it found significantly more members (a net balance increase of +40%) reporting an increase in tenant demand (see graph) while the net balance of those receiving new landlord instruction sank by 36%.
An even greater number of agents told RICS that they expect rents to rise as the imbalance between supply and demand continues through the summer.
Eoin Hill of SDL Surveying in Newbury reports: 'Rents for lettings are still increasing due to lack of stock, plus some landlords are quitting due to looming EPC challenges'�.
David Conway of Harrow firm David Conway & Co adds: 'Government anti-landlord policies will result in fewer rentals, but with increased rents.'�
Data from estate agency Chestertons confirms that June marked the beginning of this year's summer lettings season as 19% more tenants made an offer and 23% more tenants moved in compared to May. At the same time, 11.5% of existing tenants renewed their current rental contract.
Fuelled by corporate tenants as well as international students returning to the capital, Chestertons predicts for London's lettings market to remain busy over the next few months.
Richard Davies, COO of Chestertons, says: 'London's rental market is extremely competitive and conditions only intensify during the summer months with renters facing an increasingly challenging market environment. Many renters who are looking for a new property deem the property search a full-time job as it requires them to attend numerous viewings and act fast.'�
Ben Twomey (pictured), Chief Executive, Generation Rent, says: 'Soaring rents since the pandemic are now having a knock-on effect on the number of homes being advertised to rent.
'Many tenants might want to move but simply cannot because the rent on a new tenancy is now far higher than what they are currently paying.
'That means fewer properties are becoming available and those that do are being snapped up more quickly by tenants who do need to move. That is keeping rents high and unaffordable for many.
'To bring rents back within reach of people on ordinary incomes, the government needs to build more homes in the places people want to live. That must also include many more social homes so that people on low incomes can live near their workplaces and families.'�
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