Value of rented homes soars

The total value of private rented property in the UK now exceeds that of privately-owned commercial property, according to a new report from the National Association of Estate Agents (NAEA).

The organisation's figures show that the value of rented accommodation currently on the market stands at £500 billion, surpassing the value of all privately-owned commercial property such as offices, shops and hotels.

And the NAEA predicts that despite the downturn in property prices the overall value of private rented homes will rise even further as affordability problems prevent people from buying and boost demand for rentals.

It says rents are expected to rise by between ten and 15 per cent both this year and next, which could encourage more investors to consider property letting.

Indeed, a recent poll by Paragon Mortgages shows that over half of buy-to-let landlords expect tenant demand to rise in the coming year.

Investors looking to enter the buy-to-let market should make sure they are up to speed on legal issues associated with letting a property before they take the plunge and should always draw up a tenancy agreement.

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Published on: July 14, 2008

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