Supply of rental accommodation rose at its quickest pace on record in the three months to July, outstripping the increase in demand from tenants, according to the latest data from the RICS.
RICS’ latest lettings survey showed that many potential homebuyers had been forced into rental accommodation because they were unable to obtain a mortgage. Meanwhile, record numbers of homeowners were unable to sell their properties and were having to let them out.
'The wider housing market stagnation has compelled increasing numbers of would-be housebuyers and sellers to seek refuge in the rental market,' RICS said. 'As a result, activity in the residential lettings market is booming.'
The increase in rental accommodation had not yet tempered growth in rental prices. Rics said rents had continued to rise at the same rapid pace as in the previous quarter.
But oversupply was expected to have an impact on rents in coming months. Rics’ survey showed that a smaller proportion of surveyors expected rents to keep rising over the next quarter.
Financial Times, The Times, The Independent