Immigration drives record rent rises
In its lettings survey published yesterday, RICS (Royal Institution of Chartered Surveyors) has reported accelerating tenant demand and rental levels in the quarter to July.
One of the key factors driving this boost in the rental market has been immigration from EU accession countries, according to RICS. Surveyors report that immigration from EU accession countries (Government estimates stand at 427,095 since EU expansion) has put further upward pressure on rents in some regions.
Other key drivers cited by RICS are the current strength of the economy and declining accessibility.
Record rent rises
30 percent more chartered surveyors reported a rise in rental levels, as demand growth exceeded supply growth, up from 20 percent in the last quarter. The rise in rents for the quarter to July was the strongest in the survey’s history, almost four-times the long run average.
Tenant demand also accelerated in the quarter to July approaching the fastest pace since Q2 2001. 25 percent more Chartered Surveyors reported a rise than a fall compared to 19 percent in the last quarter with an ever strengthening economy and declining accessibility for first time buyers driving tenant demand higher.
Instructions to let property continued to grow, although the pace slowed for the second consecutive quarter, lagging behind demand. Tenant demand in London accelerated at the fastest pace since Q4 2000 with rents rising at the fastest pace in the survey’s history, driven by a strong corporate sector and migrant labour.
New investment in the rental market is subdued as gross yields remain low while ever increasing house prices are cooling interest.
Surveyors are confident the upward trend will be sustained in the next quarter with 28 percent more surveyors reporting confidence in rental increases compared to 24 percent in the last quarter.
RICS spokesperson Jeremy Leaf commented:
“Economic prosperity and population migration have increased rental demand pushing up rents, making conditions better for property investors. However, first time buyers will find it hard to enter the housing market with higher rents making it difficult to save sufficient sums for a deposit.”
In its lettings survey published yesterday, RICS (Royal Institution of Chartered Surveyors) has reported accelerating tenant demand and rental levels in the quarter to July.
One of the key factors driving this boost in the rental market has been immigration from EU accession countries, according to RICS. Surveyors report that immigration from EU accession countries (Government estimates stand at 427,095 since EU expansion) has put further upward pressure on rents in some regions.
Other key drivers cited by RICS are the current strength of the economy and declining accessibility.
Record rent rises
30 percent more chartered surveyors reported a rise in rental levels, as demand growth exceeded supply growth, up from 20 percent in the last quarter. The rise in rents for the quarter to July was the strongest in the survey’s history, almost four-times the long run average.
Tenant demand also accelerated in the quarter to July approaching the fastest pace since Q2 2001. 25 percent more Chartered Surveyors reported a rise than a fall compared to 19 percent in the last quarter with an ever strengthening economy and declining accessibility for first time buyers driving tenant demand higher.
Instructions to let property continued to grow, although the pace slowed for the second consecutive quarter, lagging behind demand. Tenant demand in London accelerated at the fastest pace since Q4 2000 with rents rising at the fastest pace in the survey’s history, driven by a strong corporate sector and migrant labour.
New investment in the rental market is subdued as gross yields remain low while ever increasing house prices are cooling interest.
Surveyors are confident the upward trend will be sustained in the next quarter with 28 percent more surveyors reporting confidence in rental increases compared to 24 percent in the last quarter.
RICS spokesperson Jeremy Leaf commented:
“Economic prosperity and population migration have increased rental demand pushing up rents, making conditions better for property investors. However, first time buyers will find it hard to enter the housing market with higher rents making it difficult to save sufficient sums for a deposit.”
posted by tony at 5:27 PM
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