RICS Lettings Survey 2013 Results
April 8, 2013
The Royal Institution of Chartered Surveyors (RICS) has released data from their UK survey on the state of the residential lettings market. The survey collected information on tenant demand, rents and expectations as well as insight from individuals within the industry.
The latest RICS Residential Lettings Survey shows tenant demand is continuing to grow at a faster pace than new property becomes available. Indeed if anything, the gap between the two series appears to be widening according to our numbers. As a result, it is no surprise that rent expectations remain in positive territory; this has been the case since the middle of 2009. On average, rents are expected to rise by close to 2% over the next twelve months. Significantly, although there have been some reports that rents are beginning to stabilise in parts of the country our measure of sentiment tells a rather different story with rents projected to continue rising in all regions to a greater or lesser extent.
This survey was conducted ahead of the Budget announcement introducing the Help to Buy initiative. That not only extended the existing shared equity scheme for new build property but also held out the promise of a more all embracing mortgage guarantee to take effect from the beginning of next year.
“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.” – Simon Rubinsohn, RICS Chief Economist
For more information and a link to the results PDF please see the original RICS press release