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yesterday

UK Housing Market Split: Rental Listings Hit Five-Year Low as Sales Sentiment Turns Negative

Landlord caution over tenant-rights reforms has driven new lettings to a five-year low with rents forecast to rise by 25%.

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A view of a row of residential houses in London, Britain, January 23, 2025. REUTERS/Hannah McKay/File Photo
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Interest from potential home buyers receded last month

Overview

  • A net balance of 31% of RICS respondents reported landlord instructions falling in July, marking the weakest supply of new rental listings since April 2020.
  • Survey participants anticipate rents to climb by a net balance of 25% over the next three months as tenant demand remains steady against dwindling stock.
  • Measures of buyer enquiries and agreed sales slid into negative territory in July, while RICS’ house-price balance dropped to –13%, its lowest reading since July 2024.
  • Mortgage pricing softened modestly, with the average two-year fixed rate dipping to 4.99%, but uncertainty over the autumn budget and proposed tenant-rights legislation is keeping many landlords and buyers cautious.
  • Regional trends diverged sharply, with prices rising in Northern Ireland, Scotland and parts of the North West, whereas East Anglia and London saw steeper-than-average declines.