A lack of supply is pushing rents higher signalling a revival in the East of England lettings market, according to the latest RICS Lettings Survey published today (26 May 2010).
In the East of England, 40 percent of chartered surveyors reported rising rather than falling rents - a marked contrast from the previous quarter when 22 percent reported falling rents. Surveyors are optimistic that rents will continue to rise with the rental expectations net balance climbing to 45 percent – the highest figure recorded in the survey’s history*.
The more positive picture for rents can be attributed, in part, to the continued decline in the supply of both flats and houses in the marketplace. In the East of England, 14 percent more chartered surveyors reported a fall rather than a rise in the number of new landlord instructions for this period. Nationally, the upturn in the housing market has tempted many accidental landlords to sell up with new instructions for sale on estate agents books now rising. However, one consequence of the turnaround in the rental market is that the net balance of surveyors reporting increasing gross yields has turned positive for the first time in a year, with 33 percent of chartered surveyors in the East of England reporting a rise rather than a fall.
Significantly, demand for property to let remains strong in the East of England with 39 percent more respondents still seeing a rise rather than a fall, the strongest result since January 2009. Houses remain marginally more popular than flats, although flats are starting to re-establish their appeal.