Strong tenant demand 'encourages more people to become landlords'

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Demand for rental property has been boosted by declining accessibility and ensured that more landlords have entered the sector, a new study has shown.

Rics' latest Lettings Survey showed that 29 per cent more chartered surveyors reported a rise in tenant lettings when compared to those who reported a fall in the recent quarter.

This compared to just 15 per cent more who reported increases the quarter before.

According to the report, demand for rental property was boosted in the last three months by deteriorating accessibility, tight supply and a slowing housing market.

However, the research also indicated that landlords in London and the south-east could be feeling the effects of rising interest rates too.

In these 'interest rate sensitive areas', Rics found that landlord sales rose above the survey's average.

"Current economic uncertainty has created an ideal platform for buy-to-let investors to cash in on rising rental levels," explained Jeremy Leaf, a spokesperson for Rics.

"Many would-be buyers have decided to wait and see how the interest rate cycle will affect the market."

Looking forward, Rics predicted that rents will grow at records rates in the coming months. In particular, small flats will remain popular, as first-time buyers wait to see what impact previous interest rate rises will have on house prices.

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