RICS is working with industry to develop an approved private rented sector code of practice because it believes property agents need to be regulated.
The RICS Residential Market Survey showed tenant demand increased for an eighth month in succession in August, as a net balance of +23% of surveyors cited a pick-up.
Hew Edgar, head of UK government relations and city at RICS, added: “The ever-changing policy landscape is damaging confidence in the lettings market.
“But the Private Rented Sector (PRS) has the enormous potential to deliver more homes that are urgently needed, and to contribute to the alleviation of the affordability issues which are being exacerbated by the ongoing dearth of supply across all tenures.
“The need for the regulation of property agents – including those operating in the PRS – is critical in order to make the sector more attractive to landlords, and of equal importance, enhance the landlord-tenant relationship.
“To assist this recommended regulation, we are working with industry to develop an approved PRS Code of Practice.
“We have also worked with Lord Best as part of his Regulation of Property Agents (ROPA) working group, to help bring positive change and increase public confidence in the sector; parts of which have been likened to the ‘wild west.’”
Landlord instructions remain in decline, an ongoing trend stretching all the way back to 2016. Given the consistent imbalance between rising demand and falling supply, rents are seen being squeezed higher over the next three months.