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Graham Awards


Soaring Market - no end in sight as demand overwhelms supply

The Royal Institution of Chartered Surveyors’ latest index suggests there’s no end in sight to rent rises in 2022.

RICS’ monthly sentiment survey, compiled from members’ observations on the market, says respondents continue to report solid growth in tenant demand right across the UK. 

Alongside this, landlord instructions remain thin on the ground, evidenced by 27 per cent more respondents noting a decline in supply compared to those citing an increase. 


The latest survey says: “As a consequence of the persistent disparity between demand and available supply on the lettings market, near term rental growth expectations rose further to post a net balance of 57 per cent in December [the latest figures]. 

“When viewed by region, rents are expected to pick-up firmly across all parts of the UK, both at the three and 12 month horizons.”

It’s a similar story on the sales side, and RICS chief economist Simon Rubinsohn says: “Despite the termination of the stamp duty break at the end of September and the more recent increase in interest rates, the RICS new buyer enquiries indicator remained in positive territory into the year end. 

“Although respondents to the latest survey continue to highlight a lack of stock on the market, they do encouragingly still see some scope for transaction volumes to edge upwards over the coming months.”



He continues: “More of a concern is the suggestion that the mismatch between demand and supply will drive house prices even higher through the course of 2022. Rents similarly seem likely to be on an upward course over the next 12 months despite broader cost of living challenges emerging on the back of higher energy costs.

“And significantly, the longer-term metrics capturing five-year expectations suggests the industry for now continues to anticipate prices and rents outpacing wage growth beyond the end of this year in the absence of a major uplift in new supply.”

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    Well this rings true for me, in all the years i have been a LL i have never had the agents i have used in the past Email me asking if i have any properties to let, it has always been myself approaching them..... they must be under pressure. I cannot see how in the short term it can improve, i am certainly looking at selling up due to the never ending onslaught from the govt, and the final nail in the coffin are the EPC changes, this alone will force me to start the sell off in around 3 years. If my BTL's are unable to be let out legally then what am i to do with them ?? The cost to bring them to a C is looking crazy and due to being in the retirement age zone it is not worth it for me, i will never get back the outlay. I do feel for my tenants, they have been with me for years and it will be a very hard conversation to have when the times comes, i will give them at least a years notice but i still know that when they look in the market for other places to rent, the cost will shock them, i have kept my rent below the market rate. Sad times ahead i feel.


    Simon, when I go to local landlord meetings (or should I say I used to go pre-Covid), the landlord community was predominantly aged 50+. Yes there were a few younger ones, but mainly older ones. I suspect that there will be many like you all taking the "retirement age zone" decision and selling up all or part of their portfolio. I know we're all starting to sound like stuck gramaphones but unless the government starts taking notice I feel there's serious problems coming down the line.
    I have a local EPC surveyor that I've got to know quite well, and I'm paying him to separately provide a consultancy service to survey all my houses and we're putting together a costed analysis of each house to allow me to make an informed decision around keep/dispose as appropriate. My initial plan is to dispose of 1 or 2 and bring all the others up to C or better. In no rush at the moment as I think the goalposts have a fair bit of movement yet.
    As yes, I get emails from all the agents on a weekly basis pleading for stock. Bonkers

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    The shortage of supply is only going one way as more landlords sell

  • George Dawes

    I’ve got two shops , I can assure you there’s zero demand for those 😂


    I've also got 2 shops, one trades as a cafe / takeaway and does quite well at £650 per month , the other is let but is a struggle at just £300 per month, I had others but have converted those to residential over the years.

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    The Royal Institution of Chartered Surveyors’ latest index suggests there’s no end in sight to rent rises in 2022.
    The end to rent rises will be civil unrest. Who wants that?


    Civil unrest ? you could be right, but don't look at us landlords for the cause, blame the government, every time they stick the knife in up goes your rent, end user pays

  • Theodor Cable

    Maybe I will get more money?

  • Suzy OShea

    People seem to have forgotten that in the past two years rental income in city centres, especially in London, lost about 30%.

    Now they are starting to recover but factor in the increases in utilities and landlords will be struggling to achieve pre-COVID and rampant inflationary levels. This is not even counting the extra expenses this government keeps piling on Landlords. The truth is that Landlords will charge what the market can bear.

    Fewer properties caused by the sell-off driven by greater regulation, heavier taxation and this criminal government forcing Landlords to act as Housing charities for six months and more per struggling tenant will all drive up rents.

    But no government whether local or national wants to return to building social housing for the poorer people because the social problems and maintenance costs of these council estates are horrendous. That also contributes to the scarcity.

    The government cutting universal credit payments also causes rises in homelessness, in all its many forms, whether couch surfing at friends and family, sleeping in cars or tents to sleeping and dying on the streets! This government's policies are murderous!

    If there is civil unrest, dump it on the government's door step, you know partying no 10!

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    Soaring Market no end in sight they say are they all daft while being a professional body that people rely on, do they have to wait until it happens before to know, the writing is on the wall long enough. I never agreed their is a shortage of housing anyway, just wait for a down turn and you’ll see how many spare you have and will sit there for ages with no takers. All the madness building in the skies all over priced with windows boxes as gardens, help to buy is the bonus for the Developers inflating the sale price on the buyer who can least afford it, no difference to enterprise zones in the past so nothing learned.


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