The latest lettings market snapshot by the Royal Institution of Chartered Surveyors suggests little easing of the strong tenant demand and consequent rising rents.
The RICS report – which measures the proportion of surveyors seeing demand and supply – says tenant demand growth remains firm with the latest net balance standing at +48 per cent in late May. This is broadly similar to the +56 per cent reported in April.
At the same time, the survey’s indicator on new landlord instructions remained in negative territory for a 10th consecutive month.
On the back of this, a net balance of +55 per cent of surveyors anticipate a pick-up in rents over the near term.
By this time next year rents are likely to have grown around three per cent on average across the country as a whole.
Meanwhile, the sector appears to be recovering in London, which had seen rent falls because of a lack of business and international travel activity during the pandemic; RICS says both the three and 12 month rental growth expectations are moving into positive territory.