Tue, 19 Aug 08
The number of rental properties in the housing market has dramatically increased, according to latest figures from the Royal Institution of Chartered Surveyors (RICS).
RICS survey of its members found that 43% more of its members reported a rise in landlord instructions than saw a fall during July. This is up considerably on the previous month when just 30% more chartered surveyors reported a rise rather than a fall.
A key factor is increasing numbers of homeowners who are unable to sell opting to rent out their home instead.
RICS says more rental properties are likely to come onto the market in the coming months as well, with house sales falling by around 50% in the past year.
A statement from RICS said: "Frustrated vendors have been placing their property in the market to let as they have been unable to agree sales due to a lack of demand in the housing market.”
As well as an increasing supply of rental properties RICS adds that demand is also increasing, as would-be buyers unable to secure a mortgage deal are unable to buy.
However this increased demand does not mean that landlords are able to increase rents, according to research by AXA released last week - see Home News 11 Aug 2008.
AXA found that 13% of renters had fallen into arrears in the last year. Around half of all renters surveyed said they were increasingly concerned about affording their rent.Mike Keating, managing director of Personal Lines Intermediary at AXA, said that landlords in some areas have already been forced to reduce prices and many more are set to follow.
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