The number of new properties coming onto the market was down again during April, according to the most recent RICS Residential Market Survey.
This marked the fourth consecutive month of lower supply, which is subsequently putting severe pressure on rental values across Britain.
What’s more, tenant demand was also slightly down in the first three months of 2017.
A lack of housing stock continues to be a real challenge for the sector. Simon Rubinsohn, RICS chief economist, feels tax changes are having a material effect on transaction levels, especially at the top end of the market.
Mr Rubisohn said: ‘It is noticeable in the April report that the amount of new rental instructions coming through to agents is continuing to edge lower which is not altogether surprising given the changing landscape for buy-to-let investors.’
Rents carry on rising as supply falls
‘One consequence of this is that rents are expected to continue rising not just in the near term but also further out and at a faster pace than house prices,’ he continued.
In addition, the figures seen in the report revealed that buyer interest, alongside the volume of property sales, continued to drop. This suggests that volume of homes being listed to let is not likely to increase at anytime in the near future.
Stephen Wasserman, managing director of West One Loans, observed: ‘There is a persistent supply and demand issue in the UK’s housing market and this is creating an increasingly competitive environment.’