Demand for rented homes continues to outpace supply
An increasing number of landlords could be looking to use the services of residential lettings agents over the coming months as they seek to cash in on rising tenant demand.
According to new figures from the Royal Institution of Chartered Surveyors (Rics), demand for let property is continuing to outpace the supply of new accommodation coming onto the market, resulting in rising rents.
The organisation's latest Residential Lettings Survey found that, in the three months to July, 25 per cent more chartered surveyors reported a rise in demand for rented property from perspective tenants than a fall.
In comparison, new landlord instructions - which indicate the flow of rental property coming to the market - are edging upwards at a much slower rate, with just five per cent more respondents reporting a rise in new instructions than a fall.
As a result, landlords are enjoying ever increasing rents, said Rics, with 34 per cent more surveyors reporting a rise in rents rather than a drop during the quarter.
Rics put the increasing demand for rented homes down to the increasing difficulty would-be homebuyers are experiencing to secure mortgages, while first-time buyers are struggling to amass the deposits currently needed to purchase their own home.
"The combination of strong tenant demand and a limited stock of good quality properties on offer is pushing rents ever higher across much of the country. This is the case both for houses and flats," said Rics spokesperson James Scott-Lee.
"Moreover, with mortgage finance for first time buyers likely to remain in short supply for some time to come, this imbalance is set to persist. The inevitable outcome is that rents will continue to increase."
It follows a similar report by Rightmove, which found that there is now more than twice as much demand for 12 per cent fewer properties, when compared with April 2009.
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