Landlords see tenant demand slowing
Demand for rental properties is still growing but at a slower pace as interest in buying increases.
In the three months to April, a net balance of 16 per cent more surveyors from the Royal Institution of Chartered Surveyors (Rics) reported a rise in new tenant lettings than a fall, compared to 42 per cent in the previous quarter.
A record 55 per cent more surveyors reported a fall in rents than a rise, suggesting demand for renting rather than buying is still strong, however.
Rics spokesperson, Jeremy Leaf, said: "Demand for rental property is still high but tenants have been able to take advantage of a flooded market to negotiate lower deals.
"Even so, the downward pressure on rents should ease in the coming months providing some good news for landlords."
Rental expectations have improved from a balance of -25 per cent expecting further rental declines compared to a previous reading of -41 per cent.
Earlier this month, a survey by the Halifax said that UK house prices rose by 2.6 per cent in May compared with April, while Nationwide building society reported a 1.2 per cent rise in prices in May compared with April.
The London market was the weakest, with gross yields, rents and tenant demand falling faster than any other region in the survey.
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