RICS has reported that increased tenant demand and low levels of rental property coming onto the market pushed rents higher in the three months to April.
The latest RICS Residential Lettings Survey found that 42% more surveyors reported rents rose rather than fell in the three months to April.
35% more respondents reported demand rose rather than fell, the highest level for over two years.
6% more surveyors reported new instructions from landlords increased rather than fell, taking the net balance into positive territory for the first time since April 2009.
Despite an upturn in new instructions, supply to the market still remains unable to keep up with demand. Tenants are staying longer, resulting in less availability, while fewer landlords are selling their properties at the end of a tenancy. Just 2.8% of landlords sold property in the three months to April (down from 4%).
RICS sys that the overall rental outlook remains strong, with 33% more surveyors expecting rents to rise rather than fall. Expectations for rental prices were highest in London, followed by the Midlands, the South East and the North.
James Scott-Lee, RICS spokesperson, said: “Although we are beginning to see more mortgages aimed at first-time buyers
