Activity in the rental market has slowed since the Government announced the earlier-than-expected launch of Help to Buy. The second phase of the scheme, which had been due to launch in January, has had a marked effect, the Royal Institution of Chartered Surveyors reported this morning.
It said that at a national level: Tenant demand and new landlords' instructions have almost ground to a halt.
In London, the RICS said, both demand and new instructions were falling.
However, the RICS said that the slowdown in lettings has not yet fed through to rent expectations. RICS agents are still expecting rents to increase by about 2% over the next year and by about 4% per year over the next five years.
Agents responding to the RICS survey vary noticeably in their comments about the lettings market, with many still seeing it as busy and with demand exceeding supply.
However, it is not hard to find comments which give a very different picture. In East Anglia, one agent (John B Shrive) notes: More To Let' boards by other agents than in living memory.
In the south-east, Austin & Wyatt says: Help to Buy has impacted the number of professional tenant couples.
In London, Jeremy Leaf notes: Help to Buy and competitive mortgage rates are continuing to tempt aspiring first-time buyers to purchase and not rent.
Separately, the Council of Mortgage Lenders is forecasting better first-time buyer numbers for next year. However, it also believes that there will be more lending to buy-to-let landlords. - See more at: https://www.lettingagenttoday.co.uk/news_features/Letting-activity-grinding-to-halt-after-Help-to-Buy-launch-says-RICS#sthash.Y3IMJtQU.dpuf
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