RICS: Rental Property Decline Fastest Since Covid

The flow of new rental property that enters the market has fallen the fastest since the first Covid blocking five years ago, according to research by British property surveyors.

Although the property is smooth, there are fewer new renters from homeowners, the Royal Charter Inspectors Authority (RICS) was found.

The July 2025 Rics residential market survey showed a “strictly negative trend” to homeowners, making their properties accessible to rent, which is the weakest reading since April 2020.

Due to the lack of fresh delivery in the pipeline, the lease price is expected to increase over the next three months, according to a report that requires Chartered Surveyors in the monthly “mood survey”.

The estimated growth occurs after this week’s average private rent in the UK has fallen slightly for the first time in five years.

Property agent Hampton said lower mortgage rates have helped to remove low heat from the market and that the average rent for the newly created property decreased by 0.2%in July, compared to the previous year.

The RICS report also states that new home buyers’ requests have fallen in July, indicating the softening of demand compared to the summer. In June, most surveyed said that fresh investigation had increased.

RICS chief economist Simon Rubinsohn said the flattery tone of the latest report showed the market facing challenges. Last week, the Bank of England voted in favor of a fifth percent reduction in the year, reducing the borrowing cost to 4%, given the concerns of the UK’s economy.

“Although interest rates were lowered at the recent meeting of the Bank of England, the shared vote has raised doubts about both the time and the amount of further reductions,” said Rubinsohn.

“Meanwhile, the uncertainty about the potential content of the Chancellor’s autumn budget also raises some concerns. Respondents continue to report that the market is still particularly sensitive to price.”

Property agent Knight Frank said the tenant’s right of rights, which will have to come into force next year and aimed at reforming the industry, meant that homeowners are now increasingly wanting to sell.

Or[Shrinking supply] There is one unexpected consequence for the upcoming tenant’s law, which could make it difficult for property storage and increase the risk of emptiness, ”said Tom Bill, head of residential research.

Sarah Koless, a personal finance manager for the investment platform Hargreaves Lansdown, said the RICS survey shows that “the age of fleeing is not over,” as more and more people are now chasing fewer homes. In one of the recent surveys, it was found that the average rent household had only 62 pounds left at the end of the month.