Renters face more increases as house prices begin to stabilise

Renters face rises in the property sector over the next three months, while a lack of stock sees house prices continue to rise.

There was some slowdown in sales in June, according to the Royal Institution of Chartered Surveyors (RICS), but the trend remained upward.

The RICS Residential Market Survey of professionals showed that over the next 12 months, 37 per cent of respondents foresee house prices to keep rising, but the lack of housing availability is also impacting rent.

Rents are predicted to keep rising

The survey showed that 36 per cent of respondents were seeing an increase in tenant demand, while the number of new landlords fell, with 52 per cent of respondents predicting rents will rise over the next three months.

Now, the National Residential Landlords Association (NRLA) has urged the government and the new, incoming, Prime Minister to consider a reset of plans for the housing sector.

Number of rental homes predicted to fall

The trade body’s latest survey of 708 landlords found that 23 per cent were planning to reduce the number of properties they let in the next 12 months.

This has risen from the 20 per cent figure a year ago.

The trade body warns that the supply of homes to rent is likely to keep falling over the next year as demand and rental prices increase.

There are just 14 per cent of landlords planning to increase the number of properties they let.

Plea to end hostility to landlords

The NRLA said Government policy and tax changes had directly led to the contraction of the private rented sector. The association has urged the next PM to “end this hostility to landlords” and encourage investment to meet demand.

On rising house prices, the RICS survey said the average sale prices were above asking prices for properties listed up to £500,000.

For those above that figures and up to an asking price of £1 million, 39 per cent questioned are seeing the sales price exceed the asking price. For homes worth more than £1 million, sales prices are coming in below the asking price.

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