By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards


RICS Warning: rents still rising as landlords quit lettings sector

Today’s new market snapshot from the Royal Institution of Chartered Surveyors shows tenant demand rising but at a rather more modest pace than previously. 

At the same time, however, it says landlord instructions are still dwindling, meaning RICS members anticipate rents moving higher over the coming months - albeit at a slower rate.

Simon Rubinsohn, RICS’ chief economist, comments: “There are signs that the relentless upward trend in private rents is losing momentum but fresh demand is still comfortably outstripping supply in this area which suggests there is unlikely to any significant relief for tenants. 


“Indeed, feedback from respondents to the survey continue to highlight the challenges in the sector resulting from a whole host of measures introduced in recent years.”

In the sales market today’s RICS survey shows a more upbeat picture than was the case for most of last year.  

Near outlook is still cautious, in part due to the suspicion that the recent easing in mortgage rates is likely to stall on the back of ongoing uncertainty about the timing and speed of interest rate reductions.

At the UK level, new buyer enquiries stayed positive for the second successive month (+6% net balance) showing a continued upwards trend in buyer demand. Looking at regions across the UK, most have now shown a recovery in buyer interest over the last two months.

Agreed sales were flat in February (-3% net balance) and although this is less positive than in January it still signals a stronger trend in sales than was evident in most of the last 12 months (average net balance of -22%). 

Looking ahead, the sales expectations for the near term are positive, and sales activity is expected to gain further momentum over the coming year (net balance +42%) In addition, respondents across all UK regions/countries foresee residential sales activity picking up over the longer-term time horizon.

One notable element in the February survey was a solid rise being reported in new instructions to sell. The latest net balance of +21% represents the strongest reading since October 2020, in contrast to the continuously negative picture cited throughout 2023. 

Average stock levels on estate agents books now sit at 42 properties, the highest since February 2021, with respondents noting an increase in market appraisals over the month relative to the same period last year.

House prices still point to a downward trend across the UK as a whole, but this is stabilising with the February figure the least negative since October 2022. 

In London, the turnaround in the price indicator is slightly more pronounced. 

Looking ahead, a net balance of +36% of respondents across England and Wales now envisage house prices returning to growth at the 12-month time horizon.

Rubinsohn adds: “Whether the increase in stock coming back to the market will be sustained is likely to be a critical factor in explaining how things play out over the balance of the year especially with new build likely to remain constrained. 

“Significantly, the rise in the number of appraisals taking place points in the right direction. And the government will be hoping that this trend is given a boost by the change to CGT announced in the Budget [encouraging landlords to sell].”

  • icon

    Shock, horror! 😱.Who could have seen this happening?🤔 Not the government, Shelter, Generation Rant, Acorn or any other of the bleeding heart charities who think they know what is best for the PRS. 😡

  • Kieran Ryan

    have had two lanlords only this week has asked us to sell their rental property!! the shortage is only going to get worse with only the Governments policy on landlords worsening!!

  • David Fulcher

    Quite, blaming the PRS for failure of social housing is like blaming Toyota for the failure of public transport.

  • icon

    Unfortunately, I am a landlord with 34 properties I have built this portfolio up over 22 years, 80% of my tenants are long term, but now with section 24, I am having to set up 2 more businesses, temporarily in the hope to make enough money to prop this portfolio up, while I dispose of it, in the least destructive way both financially and minimum disruption to my lovely tenants.
    It is too much, paying the mortgages, then as we all know as we cannot offset that cost, it then becomes taxable income, that I have PAID OUT! In my case due to the size of the portfolio, I am now in the 45% tax bracket.... yes "whoopy do.”
    I get the 20% allowance.
    Now a lucky friend of mine who did their portfolio in a ltd company from the start, can offset her mortgages, and is doing well, but I am penalised because I am not LTD, sound familiar.
    I looked at incorporation with Property 118, and another tax advisory firm, ( we all know how that is going, shocking) the cost would be approx. £350,000 with latent tax, conveyancing fees etc, even if you could take advantage of the entrepreneurs relief, I don't have that amount of money, and I would need to borrow more to do that, which I can't justify strangling myself and my family with, and also I suppose for the first time in my life, disillusioned and totally fed up, I will get over it, I ALWAYS DO.
    Feeling discriminated against right now, always loved the fact the UK was a nation of as" MT "put it, shop keepers and had great opportunities for people with get up and go. Having lifted myself from poverty as a kid, paid more than my share of taxes all my working life, feeling great about supplying local people in my area with decent homes, supplied local tradesman with appreciated trade I am EVOLVING down a different path.
    These homes are going to be sold off one by one and with all new regulations coming around selling etc that has its challenges too, it will take a little time to do it right and in a small village it’s going to be just GREAT, but "Hey Ho", a LTD Company Housing Provider will benefit from them I expect. as all of us non-Ltd company landlords know, we are penalised for not being in their club....... Operating in an ex-mining area with low employment, and all that goes with that. Having come from a similar background, my father was a miner, my siblings unemployed for some of their adult lives. I have not only provided good homes, but I have also encouraged 5 single parents into work nurtured them through the transition of coming from 4/5 generations of families of never having worked, been an advocate for being a worker, contributing to our community, and respecting ourselves and others in our community. Having nothing as a kid myself, I have been involved in helping their children into apprenticeships, got involved with local groups to help improve the area for us all and enjoyed it. Yes, being a landlord has been a varied role but a rewarding one. Unfortunately, not now, I cannot help anyone, I JUST COMPLY, I simply do not have the time, I am selling their home soon anyway and need to concentrate my efforts on that. I have raised their rents to full market value, there will be no time to recycle and refurbish items and distribute to them for free, as they cannot afford new. No time for help groups, or coffees. They are a now not people but numbers on a spread sheet. These numbers are causing me and my family extreme pain and anxiety. I will now use that time to generate another income stream to pay for the exit and hopefully retain a home for my own family at the end.
    When I go home, some of my childhood friends still in their ex-mining towns, and are like a proportion of my tenants, from 4/5 generations of either unemployed or low-income work, now claiming full UC, or top on their wages. They still have time, to help others, socialise, love their family, go for a run, bake a cake. Well sometimes working as a dinner lady, a cleaner or a factory/ call centre worker, or having five kids and being a stay-at-home parent, seems like a MUCH BETTER PATH.... I think, I made the wrong choice.
    Having no control over my own business, paying tax on money you do not earn, being vilified in the press, strangled by over compliance, and now discrimination, working 80 + hours a week, becoming like a robot with no time to see my family or look after my loved ones. Just because I am not a LTD COMPANY. It is what it is, DON'T YOU JUST LOVE THIS COUNTRY.
    Anonymous housing provider and previous free job & life coach for the community, signing off

  • icon

    Us landlords have become 'target acquired' by this pseudo Conservative Government, Local Councils, the Press & sundry pressure groups such as Shelter etc - they will only be satisfied when we have all given up being landlords beaten into submission by all of them. Unfortunately while they may have destroyed our finances & future retirement funds the worst group of people affected will be our tenants.
    Footnote: Gove is a T_AT


Please login to comment

MovePal MovePal MovePal
sign up