Tenant demand steadying while supply shrinks - RICS
That's the story from the latest RICS balance of opinion survey (taken from Savills). It measures RICS surveyors sentiment - what they are seeing on the ground. They report if they are seeing supply and demand increase or decrease month on month. It's a good indication as most property is leveraged which requires a RICS valuation from the lender. So what is it telling us?
Well it shows that tenant demand has flattened in the last couple of years after huge increases in demand between 2021 and 2023 (the period of highest rent growth). That has flattened since late 2024 with falls in late 2025 now seeing small increases.
The bigger story is on the supply side. That has been falling for almost the entire 5 year period. So the same demand with less supply. That is still upward pressure on rents in the medium to long term.
On the sales side the results reflect what we are seeing on the ground. A market that has stalled on both sides. The increase in supply in 2024 has faded as sellers have adjusted to the fact that they won't be able to achieve 2022 prices. Equally buyers are not in the market is there is zero confidence in both property and the wider economy. So those that have sold up have taken a haircut in order to exit.
Posted Jul 27, 2026, 7:11 AM UTC