One of the country’s highest profile agents is warning that affordability ceilings are now defining the private rental sector.

Jeremy Leaf – the former RICS chairman who now operates his own north London agency – says: “Rental supply as only increased marginally whereas demand and rent levels have eased in response to affordability concerns. 

“Those properties where rents previously increased the furthest and fastest have been particularly affected. 

“Only realistically-priced stock is generating offers with smaller flats holding sway in the popularity stakes over larger houses.”

Leaf was responding to the latest RICS Residential Survey which shows tenant demand declined slightly in November, marking the first such fall since 2020. 

Meanwhile, RICS says landlord instructions continued to fall, with a net balance of  -13%, contributing to the ongoing imbalance between supply and demand in the rental sector. 

Despite the slower demand backdrop, rental prices are forecast to edge higher, with a net balance of +29% of respondents expecting increases in the near term.