Rental market momentum is building
One big piece of news from this month’s RICS report is the uptick in landlord instructions. A total of +6% of contributors noted that they had experienced more landlords advertising rental properties in July, which is the first positive reading since 2016.
Over recent years, a number of changes have begun to affect some parts of the rental market. One major shift came from the introduction of Section 24, which changed some landlords’ tax bills. There’s also greater regulation in the market, such as more licensing schemes and new minimum requirements for some properties. Some of these changes have been good for the sector, improving standards in many properties. However, they have led a number of landlords to look to diversify, perhaps away from traditional buy-to-let.
On the tenant side, there’s been a “firm recovery”, according to +35% of surveyors. Tenant demand has increased for a third consecutive month, a significant recovery from the previous quarter. Looking to the future, +20% of respondents expect the market and rental prices to grow over the next year.
According to Elisabeth Kohlbach, CEO of Skwire, the rental market is the most positive area of housing
