The proportion of renters forecasting higher rents in 12 months’ time is above 40% for the second consecutive quarter, according to Rightmove’s latest quarterly Consumer Confidence Survey.
Letting agents have been reporting higher rents being achieved upon both tenancy renewals and for new tenant lets. Cases of gazumping are occurring where demand significantly exceeds supply. In spite of over a year of upwards rental pressure, 42% of renters feel that rents will be higher still in another 12 months. While this is slightly down on the 45% forecasting higher rents in our previous survey, 42% expecting further rises provides evidence there are still more rises to come, despite rents having already increased substantially in many locations.
The proportion of those expecting rents to be lower in 12 months’ time now stands at just 7%. The upwards price pressure on rents is highlighted by that fact that the stock of available rental properties advertised on the Rightmove website is 23% down year-on-year.
Rightmove’s Quarterly Consumer Confidence Survey first started to track a rising expectation of rent rises 18 months ago in April 2009.
Miles Shipside, director of Rightmove, said: “The momentum for further rises continues