Demand For Rental Property Continuing To Rise
Tuesday 16th March, 2010
A drop in new rental properties coming to the market for the second quarter in a row means that rents are set to rise, hopefully putting an end to the downward trend in rents that has been in place since late 2008 according to the Royal Institution of Chartered Surveyors.
The net balance of chartered surveyors reporting rising rather than falling rents in the three months to January 2010 was zero. This follows five quarters of negative readings, and is in marked contrast to April last year when 58 percent more chartered surveyors were reporting falling rents, an all-time low for the survey. In addition, expectations as to the outlook for rents continues to strengthen with a net balance of 33 percent of respondents believing rents will to rise over the coming quarter (up from 22 percent).
The buy to let market had been a very lucrative area of the UK economy for many years prior to the recession but many property investors appear to have overextended their finances and paid the price with their portfolios falling.
The number of new properties available to rent fell across all regions of Great Britain during the three months, with the South East seeing the biggest fall. Rents also increased in the South East and London, although they fell across most of the rest of the country.
If you are a would be landlord wanting to invest in property in Southampton, a business landlord with an established portfolio, or looking to rent a property in Southampton while you work or study then please contact Tenant Direct on 02380 332230.
