The most striking feature of the July 2018 RICS Residential Market Survey is the worsening trend in new instructions in the lettings sector. This was something that was highlighted in the June report on the basis of monthly non-seasonally adjusted data.

However, a broadly similar pattern is visible in the preferred indicator (released at a quarterly frequency and seasonally adjusted). The results show the New Landlord Instructions series in the latest three month period has slipped to a net balance of -22%. This is the eighth consecutive quarter in which this indicator has recorded a negative number, albeit only modestly so on some occasions.

One consequence of this imbalance is that expectations for rental growth appear to be strengthening once again. Over the next twelve months, rents are projected to increase by a little short of +2% nationally, but the shortfall in the supply pipeline is more visible over the medium term with a cumulative rise of around +15% (based on three month average of responses) expected by the middle of 2023. East Anglia and the South West are viewed as likely to see the sharpest growth over the period.