Tenant demand declined slightly in November by -1%, for the first time since 2020.
According to the RICS Residential Survey for November 2024, landlord instructions also continued to fall with a net balance of -13%.
This reflected the ongoing imbalance between supply and demand in the sector.
However, RICS still forecasts rental prices to edge higher despite the slower demand backdrop, with 29% of respondents expecting an increase in the near term.
Elsewhere, buyer demand was healthier with an upward trend of 12% recorded in new buyer enquiries - largely the same amount from October.
This supported house prices continuing to strengthen, with the RICS survey’s national house price indicator increasing by 25% over November.
“Although the latest survey results continue to signal a steady improvement in buyer demand across the residential market, the broader macro environment is likely to pose additional headwinds moving forward,” said Tarrant Parsons, head of market analytics at RICS.
“Moreover, measures of consumer and business confidence across the economy have deteriorated of late and, if sustained, this could begin to feed through into housing market conditions in the months ahead”.
