A lack of supply in Hampshire is pushing rents higher signalling a revival in the lettings market, says the latest RICS Lettings Survey published today .
The net balance of chartered surveyors in the region reporting rising rather than falling rents rose from seven to 31 percent, a marked contrast to April last year when nationally 58 percent more chartered surveyors were reporting falling rents, an all-time low for the survey.
Surveyors are optimistic that rents will continue to rise with the rental expectations net balance climbing to 65 percent in Hampshire, higher even than the current national record of 36 percent, the highest figure recorded in the survey’s history.*
The more positive picture for rents can be attributed, in part, to the continued decline in the supply of both flats and houses in the marketplace.
The balance for new landlord instructions has improved this quarter although it still strongly remains in negative territory at minus 29 percent.
The upturn in the housing market has tempted many of the accidental landlords to sell up with new instructions for sale on estate agents’ books now rising.
However, one consequence of the turnaround in the rental trend is that the net balance of surveyors reporting gross yield rises increased from 11 percent to 42 percent.
Significantly, demand for property to let remains strong with 13 percent more respondents seeing it rise than fall, a sharp increase of 10 percent this quarter.
Houses remain marginally more popular than flats, but flats are starting to re-establish their appeal. Commenting, Amanda Gardiner, RICS South East director, said: “With sellers back in the housing market, supply has fallen back in the lettings sector. This is good news for landlords as rents are set to move higher in the coming months and yield returns are likely to improve. Moreover, the news that buy to let specialists are beginning to lend again may also encourage investors to return to the market.
However, the prospect of higher capital gains tax on the sale of property may in the near term encourage some existing landlords to take advantage of the current more benign tax regime...”
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