The overwhelming sentiment in lettings is to ‘hold tight’, with a rebalancing in the market leading to some favourable conditions. Understanding the equilibrium is key to reassuring landlords who may be turning to their agent for advice or with a desire to exit lettings. As predicted, a number of investors have already sold their buy-to-lets in the wake of legislative and taxation changes, leading to a shortage of stock. Tenant demand, however, continues to remain strong and the result is the first signs of rent rises.
Agents can bolster their persuasive pitch by quoting the latest findings detailed in RICS’ Residential Market Survey for July. The respected organization has predicted a supply shortage could push rents up by as much as 15% over the next 5 years, with an imminent increase of 2% in the next 12 months on the card. Backing up the findings is news from ARLA that saw 35% of tenants questioned in June 2018 say their rents had gone up – up from 28% in May.