Private rents are expected to fall across the UK in the coming three months, but stabilise over the course of the next year.
That’s the view of the Royal Institution of Chartered Surveyors in its latest market snapshot.
Over the course of the next five years, RICS forecasts that rental growth will stand at around 2.5 per cent per annum, in comparison with prices rising by around 2.0 per cent.
“Not surprisingly, the latest survey shows that housing activity indicators collapsed in April reflecting the impact of the lockdown. Looking further out, there is a little more optimism but the numbers still suggest that it will be a struggle to get confidence back to where it was as recently as February” explains Simon Rubinsohn, RICS chief economist.
“Moreover, whether this can be realised will largely depend on how the pandemic pans out and what this means for the macroeconomic environment” he adds.
RICS says one of the key measures the government could take would be on stamp duty - either in the form of a holiday, or deferred payments or reducing it for some sectors of the market.