There has been a solid recovery in the letting market in recent weeks, according to a new RICS survey.
Respondents noted a firm recovery in tenant demand over the three months to July (seasonally adjusted quarterly time series), posting a net balance of +35%. This denotes a sharp rebound compared to the reading of -44% returned in the previous quarter.
With regards to new landlord instructions, a net balance of +6% of respondents reported a pick-up over the survey period. Although only marginally positive, this is the first occasion since 2016 in which the flow of landlord instructions has reportedly improved.
Rental growth expectations for the next three months also recovered during July, with the net balance picking up to +20% from -35% previously.
For the coming 12 months, contributors continue to project rents will rise by just over 1% at the national level. That said, while rents are expected to rise across virtually all parts of the UK over the year ahead.
London stands out as the only region in which projections are still negative, at -1%
Simon Rubinsohn, RICS chief economist, commented: “Notable aspects of the survey is the feedback that there is a greater interest in properties that offer some features that help better manage future lockdowns whether it is access to green spaces, gardens or balconies.”