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Rents will continue to rise as more people enter the rental market with fewer properties to choose from, the professional body for surveyors has said.

Demand for rental properties rose “firmly” over the three months to July, according to research from property professionals, the Royal Institution of Chartered Surveyors (RICS), marking the strongest quarterly pick up in demand since the start of last year.

At the same time, most surveyors said instructions from landlords further decreased, resulting in an imbalance of demand and supply.

The majority (63%) of the surveyor respondents to the RICS residential market survey expect rents to go up again in the coming three months.

Such a high percentage expecting an increase is a fresh record high with data going back to 1999.

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Renters are becoming more vulnerable to interest rate rises than mortgage-holders

Tenant demand had already reached a five-month high amid a “frenzied” lettings market back in April.

Rents are now reaching an affordability “tipping point” with no sign of them reducing any time soon, one respondent said.

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Analysis from Sky News showed renters are now in the majority in the UK, with people owning their home outright the second largest group, followed by mortgage holders in the minority.

“Demand shows no signs of letting up, supply remains constrained and that means rents are likely to continue rising sharply despite the cost of living crisis,” RICS chief economist, Simon Rubinsohn, said.

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Interest in buying property fell, the survey showed, as 44% of respondents noted a decline in agreed sales during July, the weakest reading for the sales measure since the early stages of the pandemic.

Instructions to sell homes also fell, despite mortgage bills becoming more expensive for many due to Bank of England rate hikes to reduce inflation.

The average rate on two and five-year fixed deals has surpassed 6% with an estimated 2.4 million mortgage holders needing to fix a new deal by the end of 2024, according to UK Finance, the banking industry trade body.

House prices have been falling as mortgage rates have risen and housebuilding activity has slowed.

The effects of that fall were seen when major UK homebuilder Bellway announced plans to cut jobs and close sites.

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English water firms get lowest environmental rating since records began

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English water firms get lowest environmental rating since records began

English water companies have collectively been given the lowest environmental rating by the Environment Agency (EA) since records began.

Companies were ranked on a scale of one to four stars. Out of a maximum score of 36 stars for all nine companies, the firms together scored 19, the lowest since the EA began monitoring.

The only utility to receive the highest four-star rank was Severn Trent, the agency said in its annual performance assessment.

The number of serious incidents, in which “significant” environmental harm was caused, increased by 60% last year compared to 2023.

Just three companies were responsible for the vast majority of incidents.

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Thames Water – the country’s biggest supplier – Southern Water and Yorkshire Water were responsible for 81% of all incidents.

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Only two firms out of nine – Northumbrian Water and Wessex Water – recorded no serious incidents.

More monitoring, inspections and data have meant that knowledge of pollution in English waterways is now greater than ever. In turn, the amount of reporting has been greater.

Other factors driving the figures are underinvestment and poor maintenance of infrastructure, as well as wet and stormy weather.

Firms have again been called on by the Environment Agency to “urgently” improve their performance. There had previously been a trend of improvement since records began in 2011, but the latest figures indicated a “dip”.

In addition to pollution incidents, companies were assessed on self-reporting and compliance with permits.

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Is Thames Water a step closer to nationalisation?

A separate report by water regulator Ofwat published on Thursday showed “mixed” performance with improvements in sewer flooding and pipe leakage, but only two companies reported a reduction in pollution incidents over five years.

Regulation of the sector has been criticised in a once-in-a-generation review of the water industry by career civil servant Sir Jon Cunliffe. In the wake of it, the government says Ofwat is to be retired.

Pressure has mounted on utilities across the UK as the public has sought action on poor water quality and rising bills.

Thames Water, in particular, is struggling under a £20bn debt pile with the government lining up insolvency practitioners.

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Autistic volunteer told he could no longer work for Waitrose hired by Asda

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Autistic volunteer told he could no longer work for Waitrose hired by Asda

An autistic man who was told he could no longer stack shelves at Waitrose when he asked to be paid has been offered a job by Asda.

Tom Boyd, 28, began volunteering unpaid at the branch of Waitrose in Cheadle Hulme, Greater Manchester, in 2021, supported by a care worker, to develop skills for the workplace on a further education course he was taking.

The work gave him a sense of “purpose and belonging”, his mother, Frances Boyd, told the BBC.

When she asked in July if he could be paid for a few hours every week, however, the supermarket’s head office told him he had to stop and could not return to the shop.

Ms Boyd said they felt “deeply let down” by the decision as he had taken great pride in his work, which included putting out stock and tidying the shelves.

“If I went in and saw him, he was smiling, and it gave him independence, a sense of purpose and belonging,” she said.

“He gave over 600 hours of his time purely because he wanted to belong, contribute, and make a difference…

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“He deserved better. He deserved kindness, respect and the chance for all his hard work to mean something.”

Mr Boyd has now been offered two paid five-hour shifts each week by Asda.

“It’s overwhelming and they are flexible to say if at any time he is struggling they are fine,” his mother said.

“How amazing that a company could do this.”

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Welcoming the news on X, Greater Manchester mayor Andy Burnham said he hoped it would lead to more employers accepting a neurodivergent code of best practice he has launched.

An Asda spokesperson said that when the store heard about Mr Boyd’s desire to find meaningful work they knew he would be a “fantastic fit” and were delighted to offer him a role.

“We know that finding meaningful work can be especially challenging for individuals with learning disabilities or difficulties,” they said.

“Asda has a Supported Internship Programme and partnership with DFN Project SEARCH, through which we have welcomed over 30 talented new colleagues into roles across our stores. We have seen the positive impact this has for the individuals who join and for our colleagues and customers too.”

A Waitrose spokesperson said they “care deeply” about helping people into the workplace who might not otherwise be given a chance and that the chain is currently investigating what happened to Mr Boyd.

“We’d like to welcome Tom back, in paid employment, and are seeking support from his family and the charity to do so. We hope to see him back with us very soon,” they added.

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Power of Russia sanctions lies in US financial system that greases the wheels

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Power of Russia sanctions lies in US financial system that greases the wheels

US sanctions against Russia’s two largest energy companies, the state-owned Rosneft and privately held Lukoil, are perhaps the most significant economic measures imposed by the West since the invasion of Ukraine.

If fully implemented, they have the potential to significantly choke off the flow of fossil fuel revenue that funds Russia’s war machine, but their power lies not in directly denying Russia access to the tankers, ports and refineries that make the oil trade turn, but the US financial system that greases the wheels.

Ever since the invasion, the Russian government has proved masterful at evading sanctions, aided and abetted by allies of economic convenience and an oil industry with decades of experience.

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New US sanctions on Russia: What do we know?

While the West, principally the EU, has largely turned off the taps and stopped buying Russian oil, China, India and Turkey became the largest consumers, with a shadow fleet of tankers ensuring exports continued to flow.

Data from the Centre for Research into Energy and Clean Air (CREA) shows that while fossil fuel revenues have fallen from more than €1bn a day before the war, they have remained above €600m since the start of 2023, only dipping towards €500m in the last month.

None of that oil has been heading for the US, but these sanctions will directly impact the ability of the Russian companies, and anyone doing business with them, to operate within America’s financial orbit.

According to the order from the US Office for Foreign Asset Control, the sanctions block all assets of the two companies, their subsidiaries and a number of named individuals, as well as preventing US citizens or financial institutions from doing business with them.

It also threatens foreign financial institutions that “facilitate transactions… involving Russia’s military-industrial base” with direct or secondary sanctions.

Vladimir Putin chairs a meeting in Moscow.
Pic: Sputnik/Reuters
Image:
Vladimir Putin chairs a meeting in Moscow.
Pic: Sputnik/Reuters

In practice, the measures should prevent the two companies from accessing not just dollars, but trading markets, insurance and other services with any financial connection to the US.

Taken in harness with similar steps announced by the UK earlier this month, analysts believe they can have a genuinely chilling effect on the market for Russian oil and gas.

Russia’s customers for oil in China, India and Turkey will also be affected, with the largest companies, state-owned and private, expected to be unwilling to take the risk of engaging directly with sanctioned entities.

Indian companies are already reported to be “recalibrating” their imports following the announcement, which came just a week after Donald Trump announced an additional 25% import tariff on Indian goods as punishment for the country’s reliance on Russian oil.

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That does not mean that Russian oil and gas exports will cease. There are other unsanctioned Russian energy companies that can still trade, and ever since the first barrel of oil was tapped, the industry has proved adept at evading sanctions intended to interrupt its flow from one country or another.

Any significant increase in the oil price beyond the 5% seen in the aftermath of the announcement could also put pressure on the White House, which is at least as sensitive to fuel prices at home as it is to foreign wars.

But analysts Kpler expect the sanctions to cause “an immediate, short-term hiatus in Russian crude exports, as it will take time for sellers to reorganise and rebuild their trading systems to circumvent restrictions and ease buyers’ concerns”.

And Russian gas will, for now, continue to flow into Europe, where distaste for Vladimir Putin‘s imperial ambitions has not killed the appetite for his fuel. While the EU has this week imposed sanctions on liquified natural gas (LNG), they will not be fully enforced until 2027.

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