Chartered surveyors have reported a slight rise in demand for lettings in the West Midlands – but the increase was slowed by a rush in properties coming onto the market.
RICS Residential Lettings Survey shows two per cent more chartered surveyors reported a rise rather than a fall in tenant demand in the West Midlands in the three months to July, down significantly from the previous quarter when 25 per cent more recorded a rise.
This is contrary to the national trend where 26 per cent more chartered surveyors reported a rise in demand, which was the second consecutive quarter that lettings demand has risen at a pace above the long run average.
Researchers found that landlords do not appear to be in any rush to dispose of their property – a net balance of just 2.7 per cent of West Midlands landlords said they intended to sell their properties at the end of a tenancy agreement.
Richard Franklin, RICS West Midlands spokesman, said: “Supply of lettings property continued to fall in the three months to July across much of the UK but here in the West Midlands we are seeing more choice coming in to the marketplace for prospective tenants. However existing landlords keen to expand their portfolio given market conditions are still struggling to access the necessary finance .
“There is some danger that the lettings market could face a considerable increase in supply over the coming months. The latest RICS Housing Market Survey shows a lack of demand from buyers coupled with increasing numbers of properties for sale. If this trend continues we may see accidental landlords holding stock longer and others joining their ranks and some moderation to the recent rental recovery.”