View more on these topics

RICS reports renting rise

Residential rents have picked up at their fastest pace in four years, the Royal Institution for Chartered Surveyors’ latest lettings survey has revealed.

Tenant demand for rented property continues to rise in the quarter to July, having held firm over the previous quarter.

Demand is strongest for flats as prospective first-time buyers still struggle to get onto the property ladder, despite a subdued sales market.

Levels of new available rented property have picked up after stagnating in the last quarter, though the increase is slight and not enough to cap rents.

More buy-to-let investors are entering the market. Existing landlords are also less likely to sell when tenants’ agreements expire. Landlords are exiting the market at half the rate of this time last year.

Increasing rents continue to lift gross yields for the second consecutive quarter.

However, the renewed growth in new investor instructions will increase the supply of available property and has led surveyors to dampen their outlook for growth in the sector.

Surveyors’ expectations for rent rises have decreased across all regions other than London and the South West.

However, there is little chance of short-term rent falls as tenant demand remains strong.

Jeremy Leaf, RICS spokesperson, says: “The return of buy-to-let investors to the market is a result of expectations that interest rates have peaked.

“They may also have been encouraged by the fact that the housing market, though subdued, has not collapsed, despite widespread fears it would do so.

“August’s interest rate cut is unlikely to reduce tenant demand as tough affordability means renting remains the only realistic option for many.”

Recommended

Saffron goes live with xit2’s online valuation solution

Saffron Walden Herts & Essex Building Society has turned to xit2, the experts in outsourced process management, to provide them with an online system to manage their external valuations.The Valuation Exchange developed by xit2 streamlines the valuation instruction process, and can halve the time taken to instruct the valuation. This time saving is continued throughout […]

Cameron backs Prescott plan

Tory leadership hopeful David Cameron has questioned opposition to deputy prime minister John Prescott’s house-building plans. Speaking in Devon, Cameron focussed on the poor quality of life in built-up areas. He says: “It’s a scandal that in the fourth richest country in the world, we tolerate conditions that would have been unacceptable 50 years ago.”

MI launches stepped deal for graduates

Mortgage Intelligence has launched a deal designed to take graduates from university to their first step on the property ladder. The UNI-STEP deal combines a stepped fixed rate with a loan that could be 6 x the graduate’s income if supported with a parental guarantee. To ensure affordability, guarantors are assessed on an individual basis. […]

CII wins chartered status for financial planners

The Chartered Insurance Institute has received confirmation from the Privy Council that it has been granted permission to award the new title of chartered financial planner. This decision has been seen as a landmark in the drive to raise the standing of financial services with the public, and means that financial advisers will now be […]

Unfinished business?

Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]

Newsletter

News and expert analysis straight to your inbox

Sign up