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Out of balance: Huge number of renters as rental stock still very limited

The latest rental market snapshot by the Royal Institution of Chartered Surveyors suggests supply and demand in the lettings sector still out of kilter.

RICS says tenant demand for homes to rent accelerated in August, with a net balance of 66 per cent of its survey respondents reporting a pick-up in enquires.

This was up from 58 per cent the previous month. 


However, there’s been a continuing decline in landlord instructions fuelled expectations among survey respondents - net balance of 64 per cent say that they expect rents will go up over the next three months given this imbalance between supply and demand.



And in a surprise move, RICS has also said that the stamp duty holiday, which goes on until the end of this month in a tapered form, should never have been extended from its original length.

The statement comes from Bradley Tully, RICS’ senior public affairs officer, who says: “RICS was supportive of the stamp duty holiday as a response to unique market circumstances last year during the height of the pandemic, though the scope of the holiday was arguably broader than we had anticipated and it should have been allowed to expire as originally intended.

“Over the long-term, RICS believes that an overhaul of stamp duty land tax should ultimately be delivered. Indeed, earlier this year the House of Commons Treasury Select Committee recommended that reforming stamp duty should be a priority for the government in their report, ‘Tax After Coronavirus’.

“We would urge the government to undertake a full-scale review of the current stamp duty land tax system to assess future ideal outcomes in terms of factors such as revenue generation and housing market fluidity. Housing affordability for first-time buyers and key workers should remain a crucial factor when considering access to the market too.”

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  • icon

    The government, Labour, Shelter, Generation Rent, Acorn and the anti - landlord brigade…. Don’t say you weren’t warned that your constant hostility wouldn’t force decent compliant landlords out of the market.
    One would hope the message is getting across that this ‘baseball bat’ approach is compounding the lack of housing and hugely damaging supply. The build to rent sector is decades away from coming to the rescue.
    Working with and incentivising landlords has always been the way forward for greater tenant security and safe/compliant property. Given the consequences of these tenant group’s actions, perhaps a more nuanced creative approach will ensue from those involved.
    I’ve said for some time that simple tax incentives for landlords who offer longer Tenancies (say 5 years) without a break clause would be a great start.
    The reality is that too many are making a living attempting to turn the PRS upside down, whatever the consequences, ……so I won’t hold my breath!


    Really well put. I think the damage they have perpetrated on behalf of tenants has caused hardship to the very group they claim to represent. Chickens have come home to roost

  • icon

    On the up side, for landlords, with all this demand for rental properties we can pick and choose who we rent to, no need to even consider any one who is not in full time work, and of course the rents keep climbing.

    Theodor Cable

    Not only those exclusions, but add animals? And human animals, of which there is a vast and unwelcome amount?


    I liked your comment about the human animals. we have East Anglian Motor Auction here in Norfolk, it has for yrs been known as '' the zoo '' in the trade, 90% of those in attendance fall into the animal bracket.

  • PossessionFriendUK PossessionFriend

    Rental stock limited ? - well who'd have thought that !
    ( clearly Not the Govt or Rogue Tenant supporters ! )

  • icon

    All hugely predictable - and predictED by everyone in the sector. Section 24, licensing, extreme regulation, punitive fines for minor admin errors, charities and politicians who hate us have all created this situation, so they’ll have to reap what they sow.

  • icon

    Has anyone experienced poor performance from the police who seem to be blaming the victime .ie. landlords.

     G romit

    Make non-payment of rent a criminal offence like theft is, and damaging property be classed as 'Criminal Damage'.
    Allow attachments to benefits and earnings be made automaticly with repayment over a maximum of two years

  •  G romit

    ...and the Governments answer to this - abolish Sec.21 Notices i.e. lets make it harder and more expensive for Landlords to regain possession of their properties.


    By making it harder to evict makes it more difficult for tenants to find a home to rent, landlords now check out new tenants very carefully, if in doubt, if it doesn't fell right don't rent to them, better an empty property than one with a tenant from hell in it , don't think the government have worked this one out as yet .

  • Theodor Cable

    G romit

    You are 200% correct, as implementing those ideas all this nonesense would stop.
    Just as the Germans and Australians do it.

    And both those systems work like a gem.

  • icon

    I agree entirely and I have become very picky when it comes to choosing new tenants.
    Must have enough income to cover the rent every month. be in a reasonably secure job, must have good references and a host of other things.
    As you very ably point out, it is better to have an empty property than have to suffer the consequences of a nightmare tenant.
    The PRS is becoming so over regulated and this is the main reason why landlords are selling up.
    As you get older, you find that you don't really need the worry and hassle associated with it.

  • Theodor Cable

    Don't forget the very important GUARANTOR.
    Preferably too, it is someone who is older, a member of their family, and can proove they can pay at least 6 months of the rental.


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