Rents to increase “firmly” over the next 12 months
The latest market snapshot from the Royal Institution of Chartered Surveyors suggests that rents are to increase “firmly” in the near future.
The November sentiment report produced by RICS today shows that tenant demand saw another solid monthly increase with a net balance of +48 per cent of agent respondents citing a rise.
Meanwhile, landlord instructions fell according to a net balance of -24 per cent of participants.
Given this mismatch between rising demand and dwindling supply, RICS says: “Rents are anticipated to increase firmly over the near term, returning a net balance +49 per cent.”
Over the next 12 months, RICS agents says they expect around four per cent growth in rents at the national level, with increases expected to average roughly five per cent per annum over the next five years.
The sales side also shows a significant and growing mismatch between demand and supply.
Those responding to RICS’ late-November sales survey reported a net balance of +13 per cent in new buyer enquiries, a slight increase on the +11 per cent reported in October.
But there’s a net balance fall of -9 per cent in agreed sales – this is the fifth time in a row a negative result has been reported.
Respondents frequently said the continuing drought in new listings was a significant factor holding back the market nationwide – with a net balance of -18 per cent of respondents noting a deterioration for an eighth consecutive month.
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