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Agents report fewer landlord instructions as 'unintended consequences' kick in

rics rental market report

Further signs that the Government’s assault on the PRS coupled with higher mortgage costs are chasing more landlords out of the market than usual have come from the Royal Institute of Chartered Surveyors (RICS) this morning.

Its monthly snapshot of the housing market based on reports from members letting agents reveals that landlord instructions – i.e. new stock coming onto the market – continue to drop with a ‘net balance’ of -18% of members reporting fewer.

Tom Bill (pictured) head of UK residential research at Knight Frank, says: “Rental values continue to rise due to a shortage of supply and strong demand.

“Landlords have faced higher taxes and growing red tape in recent years, which means many have left the sector.

“As the Renters Reform Bill goes through Parliament, it is a reminder of the unintended consequences that government intervention in the housing market can have.

“What started as a politically-motivated attempt to deter landlords has become financially punitive for tenants.”

RICS says most UK areas seeing a further reduction in such listings.

More worrying for the Government, which has been chasing the renter vote with its renting reforms for some time now, a net balance of 53% of survey participants said rents will continue to rise over the next three months.

Over the next twelve months, rents are projected to rise by around 4% on average across the UK.

The only good news for ministers is that tenant demand for properties has eased off over the past month although this may be a seasonal rather than economic trend.


Knight frank