Even as the UK house price growth remained modest, a positive rental growth is expected in the lettings market.

According to the latest RICS UK Residential Market Survey (Jan 2018), In the lettings market, tenant demand edged up in the three months to January, but landlord instructions fell back slightly once more. This imbalance prompted positive rental growth expectations for the near term.

The regional renting picture remains as varied as the buying market. Rents are anticipated to see slight change in the South East on the same basis. Elsewhere they are generally expected to move higher. This comes as a welcome relief for buy-to-let investors, who were worried about stagnation in rental growth.

The London rental market is also stabilising as fewer properties are being let by landlords.

Moving to prices, the national price balance remained unchanged from December with 8 per cent more respondents seeing a rise in prices nationally. This is consistent with further modest price growth. Looking at price expectation for the next 12 months, it is positive in eleven of the twelve regions/countries covered by the survey.

Lack of inventory on agents’ books continues to provide a major challenge with the number of valuations being undertaken not suggestive of a pick-up in new supply anytime soon, the RICS said.