The Royal Institution of Chartered Surveyors (RICS), has reported that Private Rented Sector (PRS), property rental prices have continued to increase across the UK but at a much slower rate than has previously been observed over the last 2 years.
RICS says the rental property market may be beginning to level out, with an increasing number of prospective tenants unwilling to pay out for increasing private sector rents.
With PRS rental growth beginning to slow in many areas of the UK and a recent upturn in prospective property buyers, RICS says an increased number of landlords are looking to sell their rental properties when they reach the end of lengthy tenancy agreements rather than face expensive refurbishment costs.
RICS members that also handle residential property lettings have stated that they expect very slow growth in PRS rental values.
Michael Newey, RICS spokesperson, said: “With many potential first-time buyers having been forced into rented accommodation due to problems with obtaining affordable mortgage finance, rental prices have grown quickly across much of the UK in recent times. However, it seems that tenants may be becoming less willing to meet increasing rental values. While still growing, demand from potential tenants is also beginning to slow. With a recent upturn in buyers entering the sales market prior to the expiry of the Stamp Duty holiday in March, it seems that those who are in a position to get a foot on the property ladder may have chosen now to do so.”
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