The Government has been warned that it must see the housing market as a complete entity, not as separate parts.
The RICS this morning says that Boris Johnson’s new administration seems to be concentrating on raising levels of home ownership, but that falling supply in the lettings market is set to squeeze rents higher.
It says that tenancy demand is at the highest since the end of 2016, but that landlord instructions across the lettings market have fallen continuously for the last 13 quarters.
Agents taking part in the survey are forecasting near-term rental growth.
The RICS also reports that agents have negative expectations for house sales and prices.
New buyer demand is slightly up but transactions have remained flat, and newly agreed sales have slipped.
The shortage of stock new to the market persists, with an 11th consecutive monthly decline in new listings.
The gloomy RICS report says there is little prospect of a sustained rise in supply in the immediate future.
Simon Rubinsohn, RICS chief economist, said: “The latest RICS results will provide little comfort for the market with all the key indicators pretty much flatlining.
“Indeed, the forward looking metrics on prices and sales also seem to be losing momentum as concerns, clearly voiced in the anecdotal feedback, both about Brexit and political uncertainty heighten.
“Meanwhile, the lettings market data continues to send a very strong message that institutions need to upscale their build to rent pipeline to address the shortfall resulting from the decline in appetite from buy-to-let investors.”
The RICS survey is based on 334 responses covering 604 estate agency branches in England, Scotland, Wales and Northern Ireland.