18-12-2007
RiICS confirms drop in tenant demand
The Royal Institution of Chartered Surveyors (RICS) has confirmed a drop in the demand for rented properties.
Data released by RICS, an organisation established in 1868, shows that tenant demand has "moderated", with the organisation finding that the amount of chartered surveyors reporting an increase in the number of lettings has fallen from 28.5 per cent to 20 per cent.
"A combination of the tightening lending criteria and successive interest rate rises has started to hit the buy-to-let market but with the drop in capital gains tax due in April next year, many landlords will resist selling until the spring," said Jeremy Leaf, a representative from RICS.
The decline is being blamed on excessive supply levels within the buy-to-let sector.
However, it was noted that, despite the moderation, there is a greater level of demand within the sector for family houses, compared with flats.