Supply shortage sustains UK residential market
Persistent shortage of new residential property is supporting the UK market, with continued upward pressure on rents and prices across the country, says the Royal Institute of Chartered Surveyors (RICS) in its latest reports.
“The supply shortage [is the] very dominant feature of the market at present,” stated RICS, reflecting its members’ comments. They predict that rental growth will rise by 4.4 per cent per annum over the coming five years, as demand continues to outstrip supply both in London and the rest of the country.
Sales and letting activity is expected to increase over the rest of 2017, according to most survey respondents, with the great majority predicting residential property price rises, even in London, where increases are expected to be relatively modest, compared with recent years.
The restricted supply has meant estate agents have dwindling stocks of properties on their books, with levels now at historic lows. “The imbalance between supply and demand continues to exert upward pressure on rents, and contributors anticipate further rental growth in virtually all areas over the next twelve months,” stated the RICS residential property report for March 2017, released in mid-April.