Lack of supply 'pushing up rents'
by Christopher Evans
A lack of supply in the lettings market is increasing rents
, according to the latest figures from the Royal Institution of Chartered Surveyors (Rics).
The group also said that rents are set to move higher in the months ahead, while yield returns are likely to improve.
Its lettings survey revealed that a net balance of 30 per cent of chartered surveyors have seen rising rather than falling rents in the last three months, up from zero per cent in the previous three months.
In April last year, a net balance of 58 per cent were reporting falling rents – the lowest figure in the survey's history.
Rics spokesman Jeremy Leaf pointed out that supply has fallen back in the lettings market, as many of those who were renting out property because they were unable to sell it have now moved back into the sales sector.
"This is good news for landlords," he remarked. "Moreover, the news that buy-to-let specialists are beginning to lend again may also encourage investors to return to the market."
Earlier this month, the Council of Mortgage Lenders said that the prospects for the rental market were good, although uncertainty over house prices, interest rates and mortgage availability are still holding some investors back.
- Landlord and Tenancy News from Lawpack: Solicitor-approved Rent Increase Notice (Section 13) with expert guidance on how to complete the legal form
Published on: May 27, 2010
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