Landlord instructions have fallen at their steepest rate since April 2020, data from the Royal Institution of Chartered Surveyors (RICS) has revealed.

It comes amid concerns about changes to property taxes in the Autumn Budget

The latest RICS Residential Market Survey for August shows a net balance of -37% of respondents reported a fall in landlord instructions.

A net balance reading of +5% said tenant demand is rising.

Looking at rental price expectations, a net balance of +27% of contributors are of the opinion that rents will increase over the coming three months. Looking ahead to the next twelve months, respondents are pencilling in roughly 3% growth in rents at the national level.

Commenting on the report, Russell Anderson, commercial director of mortgages at Paragon Bank, said: “A decline in landlord instructions noted by surveyors is further evidence that supply is failing to meet the continuing demand for privately rented homes.

“Survey respondents also anticipate further rent rises, a primary symptom of this imbalance between supply and demand. In addition to making it harder for would-be buyers to save towards their first home, undersupply of rented property also limits the choice of homes available to tenants. This has a negative indirect impact on the economy as rented accommodation provides flexibility that enables people to move for work or study with minimal friction.  

“To address this, we need to ensure that investment in the private rented sector remains viable. That means creating an environment where landlords feel confident to grow and maintain their portfolios to the high standards that renters rightly expect. Lenders and brokers have a role to play by working with landlords and offering finance options that facilitate this, but broader support is needed.

“Policymakers must consider the long-term impact of regulation and taxation on landlord confidence and behaviour. A balanced approach that protects tenant rights while encouraging responsible investment is essential if we’re to see a healthier, more sustainable rental market.”