According to the Royal Institute of Chartered Surveyors, rent fell in the last three months to October – the first rental fall since 2003. RICS says this is down to ‘accidental landlords’ – people preferring to or having to keep hold of their property as the housing market deteriorates.
RICS says London has seen the biggest drop in rent as unemployment and the threat of unemployment takes hold in the South East – 33 per cent of London surveyors found rents to be falling.
Nationally, the demand for rent remained stable – the institute found that 27 per cent more surveyors reported a rise in lettings over the period. But that number is small in comparison to the number of surveyors who found a rise in instructions to let by landlords – an increase of 56 per cent.
RICS says: “Would-be home sellers are opting to bide their time by catering for the increased demand rather than sell at distressed prices.”