The stagnation of the UK property market has resulted in rents falling for the first time since 2003.

UK rents have fallen for the first time in five years, as the lettings market is becoming flooded with properties that have failed the sell, the Royal Institution of Chartered Surveyors (RICS) warned today.

According to a RICS survey, the number of new lettings instructions has outstripped tenant demand for the second consecutive quarter as would-be sellers are opting to rent their homes rather than sell their property at a discount.

RICS further attributed growing rental supplies to the fact it is becoming harder to obtain a mortgage, reducing the number of buyers and forcing prospective sellers to consider alternative options.

For the three months to October, the number of surveyors reporting a rise in new tenant lettings increased 27%, compared with 36% in July.

In comparison, the number of surveyors reporting a rise in new landlord instructions went up 56%, compared with 45% in July.

When comparing the market, whilst houses are proving more popular to rent than flats, rental figures for flats – both past and expected – are performing better than houses. 

Regionally, London is the only location where tenant demand fell outright whilst the Midlands and Wales have experienced the strongest growth in new instructions.

To read the report in full or to find out more about RICS, visit: www.rics.org

By Natasha Piscitelli