Residential property rents in the UK are increasing as tenant demand and a shortage of properties dominate a buoyant lettings market,
- 26% more chartered surveyors reported a rise in demand for property rather than a fall
- Strongest demand increase in London and the East of England.
- Large deposits and difficulty securing mortgages leading to higher numbers seeking to rent rather than buy.
- Low Supply, only 4.1% of Landlords intend to sell at the end of current AST. Supply fallen for fourth consecutive quarter.
- Rents for houses are expected to marginally outperform flats.
- However as property prices are still low, many owners may let for some time before selling, thus modestly increasing supply.
- One in five landlords are experiencing rent arrears and many are concerned about the increase in Capital Gains Tax. Added to the forthcoming cuts to Local Housing Allowance and the possibility of increased interest rates, it is clear any increase in rents will be quickly offset by these additional factors that have to be taken into account.
Article is a summary of information from www.propertywire.com