Rents set to rise three per cent in next 12 months, say surveyors

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.

Written by: Houseladder