The latest market snapshot from the Royal Institution of Chartered Surveyors shows another robust performance for lettings.

RICS says tenant demand continues to rise at a solid pace, with a net balance of 46 per cent of survey participants noting an increase in October.

At the same time, landlord instructions fell once again according to a net balance of 14 per cent of respondents at the headline level. 

Given this mismatch, surveyors say rents are expected to be driven higher over the near-term.

At the 12-month time horizon, respondents envisage rents picking up by around four per cent nationally.

RICS chief economist Simon Rubinsohn says: “The latest feedback to the RICS survey provides further evidence of buyer caution in the face of the sharp rise in mortgage costs. 

“As a result, the volume of activity is likely to slip back over the coming months and realistic pricing is now much more important to complete a sale. The settling down in financial markets could provide some relief although it may be premature to assume this will be reflected in a reduction in lending rates anytime soon. 

“However, the employment picture remains critical to the medium-term outlook and for the time being, that remains solid.

“As far as the lettings market is concerned, the imbalance between demand and supply still appears unusually extended leading to rent expectations in the survey remaining at elevated levels and it is difficult to see this changing anytime soon in the current environment.”