A strengthening residential sales market is putting tenants under greater pressure, according to the Royal Institution of Chartered Surveyors (RICS).
These were the findings from the RICS’ monthly UK residential market survey which gains insights from chartered surveyors.
Over October both house prices and sale activity grew. During the month, over 9% of respondents reported an increase of sales volumes, up from 5% in the previous month.
Looking ahead, near-term sales expectations are up 34% compared to 22% before October.
Additionally, 16% of respondents reported a rise in house prices. For context this proportion had been 0% in September.
Tenancy demand remains high, with 19% of respondents reporting a rise in tenant demand for the three months to October, but landlord instructions also fell sharply by 29%. This is the most severe fall since the end of 2021.
Given the supply and demand mismatch for rental properties, 33% of RICS members anticipate rents to grow over the coming three months.
This activity has been partly spurred on by the recent Autumn Budget, according to RICS president Tina Paillet.
“Our data continues to indicate that renters are feeling the pressure from a limited supply of rental properties and rising rents,” said Tina.
“While the Autumn Budget announcement of immediate stamp duty increases for landlords acquiring rental properties may increase opportunities in supply for owner-occupiers, it will make it more challenging to address the critical shortage of rental homes.”
