Tenant demand is increasing overall with not enough properties available as landlord instructions are falling, according to the RICS
Tenants should brace for a 4 per cent rise in rent over 2024 as many Britons continue to be priced out of the housing ladder, according to surveyors.
Tenant demand is increasing overall with not enough properties available as landlord instructions are falling, according to the Royal Institution of Chartered Surveyors (RICS).
The imbalance means that most surveyors are already forecasting rental prices will rise over the three months and soar by 4 per cent over the next year.
With monthly rents outside of London currently averaging £1,278 and a record of £2,627 a month in London, a 4 per cent increase will see tenants pay an extra £613 a year in rent next year. For those who live in the capital, the rise will be an extra £1,260 in 2024.
The survey also found that house prices are still declining but at a slower pace. A net balance of 63 per cent of property professionals reported house prices dropping instead of rising in October, easing from a balance of 67 per cent in September.
The typical UK property in October had a £281,974 price tag, as per Halifax.
The latest house price reading “suggests the pace of drop, from a national perspective, has levelled off in recent weeks”.
Nevertheless, the house price metric remains deeply negative across most parts of the UK, even if the latest readings have moved off the lows hit over the past couple of months in the majority of cases, the report further said.
Sales activity remained weak, with a net balance of 25 per cent of property professionals reporting a drop in sales instead of an increase in October.