The rental market across the UK continues to suffer from a shortage of homes as landlords sell up.

That’s the conclusion from the latest market snapshot by the Royal Institution of Chartered Surveyors (RICS).

The report says: “RICS member comments from across the country repeatedly point to a shortage of good-quality rental stock, alongside concerns that taxation, regulation and affordability are influencing landlord and tenant behaviour.”

The RICS survey always measures sentiment from member agents – positive measures suggest good news.

It reports that tenant demand was broadly flat in the three months to July, with a net balance of -1%, down from +12% previously. 

However, landlord instructions remained firmly negative at -27%, with survey feedback continuing to indicate that some landlords are reducing their portfolios or leaving the sector altogether.

Meanwhile expectations for rent rises remain firmly positive. 

A net balance of +28% of respondents expect rents to rise over the next three months, compared with +25% previously.

RICS Chief Economist, Simon Rubinsohn, says: “Feedback from respondents to the RICS survey is continuing to draw attention to the impact of latest round of regulation on the rental market with the key indicator of new instructions pointing to a further drop in supply.”