Demand for corporate lets in London, which account for 30% of the market, was markedly down, reflecting the impact that 11 September and the weaker financial markets have had on that sector. Regional demand held up much better, where corporate lets account for only between 6% and 12% of the overall market.
London saw the steepest rise in the supply of property available, reflecting the high level of investor interest in lettings in the capital.
Unfurnished flats proved most popular with tenants. The share of tenant mix changed, with private tenants rising to 82%, from 74%. Corporate lets fell from 15% to 12%, and social lets from 7% to 3%. Students and others remained at 3%.
Rents remained static, held back by the increase in available property coming on to the market. But for the next quarter, 20% of surveyors expect rents to rise, fastest outside London, though the capital should see some upward movement as oversupply eases.
RICS lettings market spokesman Jeremy Leaf said: 'There is not much profit for landlords in the lettings market at the moment. The increase in availability caused by investors entering the buy-to-let market has had a big impact on the whole sector in the last few months.
'Although tenant demand remains strong, especially for unfurnished property, the number of properties available has held rents down. However, that looks set to change in the coming months.'
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