Slowdown in new rental properties hitting market

THE flow of fresh rental properties coming to market has fallen at its fastest rate in five years, according to surveyors.

- By VICKY SHAW

A net balance of 31% of professionals saw new instructions from landlords falling rather than rising, which was the weakest reading since April 2020, the Royal Institution of Surveyors (Rics) said.

Alongside the “firmly negative trend” in landlords making their property available for rent, tenant demand held steady in the three months to July, the report added.

With the lack of fresh rental home supply in the pipeline, rental prices are anticipated to continue to rise over the next three months by a net balance of 25% of survey participants, the report said.

Looking at the sales market, new home buyer inquiries fell back in July, the report said. A net balance of 6% of property professionals reported new buyer inquiries falling rather than rising in July, indicating a softening in demand compared with the previous month.

In June, a net balance of 4% of professionals had seen a rise in fresh inquiries from buyers.

The report said results across different areas appear to be increasingly variable, with relatively weaker demand trends reported in East Anglia, the South East and South West of England.

Sales fell in July, with a net balance of 16% of professionals seeing falls, deteriorating further from a balance of 4% who noted falling sales in June.