Surveyors are expecting rents to increase over the next three months as landlords face rising tenant demand. The Royal Institution of Chartered Surveyors (RICS) September survey found that a net balance of +23% of respondents reported increased tenant demand, marking the third consecutive month of acceleration for this measure.
The balance of landlord instructions remained negative, while a net balance of +37% of contributors anticipated rent increases in the upcoming quarter. This figure is down from +44% in August but remains above the first-half average of +27%.
In the sales market, new buyer enquiries saw their first deterioration since March, falling to a net balance of -22% from -18%. Agreed sales also dipped to -18% from -16%. However, new sales instructions reached +6%, the first positive reading since mid-2025, despite market appraisal activity being below levels from a year earlier.
The headline house price balance fell to -32% from -28% in August, ending four consecutive months of less negative readings. Most parts of England recorded more negative house price balances, with London showing particular weakness compared to the national figure. Prices continued to rise in Northern Ireland, and Scotland experienced modest growth.
Looking ahead, the three-month price expectations balance stood at -24%, but the 12-month reading was zero, suggesting respondents expect prices to be broadly flat over the longer period.