Demand for rental property sees rents rise
Increased demand from tenants coupled with a scarcity of rental properties saw rents climb in the three months up to April, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Lettings Survey.
The research shows that 42 per cent more surveyors recorded an increase rather than a drop in rental values.
Looking at the supply of rental property in the market, six per cent more respondents said that new instructions from landlords rose rather than fell - brining the net balance into positive figures for the first time since April 2009.
However, supply to the market still remains unable to satisfy demand, despite a pick up in the number of new builds.
With access to finance still proving difficult for many, tenants are also staying longer, further restricting availability.
Furthermore, fewer landlords are selling their properties when the tenancy comes to an end as the prospect of a sale remains increasingly unlikely.
The survey found that just 2.8 per cent of landlords sold property in the first quarter of 2011, down from the previous quarter's four per cent.
RICS expects the rental market to remain buoyant, with 33 per cent more surveyors anticipating rents to continue to rise.
Naturally, rents in London were the highest, with the Midlands, South East and North following.
RICS spokesperson James Scott-Lee commented: "Although we are beginning to see more mortgages aimed at first-time buyers, many potential homeowners are still restricted from getting a foot on the property ladder, leading to increased demand in an already oversubscribed rental market. There has been a small uplift in supply, but the imbalance between demand and availability can only mean rents will continue to rise."
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