The Royal institution of Chartered Surveyors (RICS) has this evening dropped a bombshell on the UK property market with data showing a significant fall in rental value and many estate agents forecasting further downside. The survey revealed that 55% of estate agents expect rental rates to fall over the next three months against just 48% in April. The problem appears to be oversupply in the UK rental market which has been brought about by more and more homeowners being forced to rent out their properties to cover the bills.

The suggestion that some rental values have fallen by 30% from their peak is certainly an eye-opener for many UK property investors who will have seen a significant reduction in their own rental income. The buy to let market has also shown significant signs of weakness over the last few months with more and more property investors struggling to pay their bills. If the UK property market does not recover in the short to medium term we could see yet more "indirect" landlords entering the battleground and forcing rental rates down further.

The recession may have taken some way to hit the buy to let market and the rental market but there are signs of significant problems for this particular area of the UK property sector.

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