RESIDENTIALlettings
T Theenants fight back
RICS Residential Lettings Market Survey R
50 40 30 20 10 0
-10 -20 -30 -40 -50 -60 -70
ental prices increased at a slower rate towards in the early part of the year as some tenants began to resist the sharp rises in rent levels
seen in recent quarters, according to the latest RICS Residential Lettings Survey. Rental prices continued to increase
across the UK, albeit at the slowest pace in two years, in the three months to January with a net balance of +13 per cent of RICS surveyors reporting increases in past rental values (down from +21 per cent in the last
HIGHS AND LOWS % Balance
Jan - 10 Apr - 10 Jul - 10 Oct - 10 Jan - 11 Apr - 11 Jul - 11 Oct - 11 Jan - 12
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Fig 1: Past Rents Nationally The latest RICS Residential Lettings Survey shows rents continuing to pick up, but the pace of growth moderated further in the three months to January.
60 40 20 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fig 3: Change in rents – overall.
-20 -40 -60
50 APRIL 2012 PROPERTYdrum % Balance
quarter). With values having risen strongly for some time, the market may be beginning to level out with prospective tenants less willing to pay increasing rents. Demand for rented accommodation
remained relatively strong with 19 per cent more respondents reporting rises rather than falls in interest from prospective tenants. Demand has been increasing each quarter; but, says RICS, with an increasing number of first time buyers looking to beat the expiry of the stamp duty holiday in
Students 5
6 7 9 5 4 7 6 4
March, it seems some have turned to the sales market, slowing the pace of rental growth. Alongside this, the supply of homes for
rent remained positive in the three months to January with eight per cent more respondents reporting rises rather than falls in new instructions. Supply has now remained in positive territory for four consecutive quarters. Significantly, with rental growth
beginning to slow in many areas of the
Percentage shares of all new lets (%) Social
11 10 11 11 10 8
13 8 8
Corporate 10
8 7 8 7 7 8 8 7
72 73 69 72 76 66 71 79
Figures may not sum to 100% due to rounding, not seasonally adjusted
Fig 2: Demand by tenant type Private individuals share of new lettings rose to 79%, while the proportion to corporate, social and student tenants remained little changed from last time.
40 20 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fig 4: Change in gross yields – overall.
-20 -40 -60 -80
% Balance
Private 71
Other 4
4 3 3 6 5 6 6 2
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68