Strong tenant demand boosts rents
Posted: 26 May 2006 10:34:12 GMT
Landlords have reportedly seen rent rises accelerate for the second consecutive quarter thanks to both economic and demographic factors.
The latest lettings survey from the Royal Institution of Chartered Surveyors (Rics) found that 20 per cent more surveyors saw a rise in rental levels than a fall in the first quarter.
Furthermore, it is thought that rents increased at their quickest rate since July 2001, corroborating recent reports that have suggested the rental sector is in good shape.
Economic growth is seen as one of the key factors behind this improvement, while rising levels of employment and inward migration have also contributed significantly.
Tenant demand is continuing to rise and in London it accelerated to twice the long-run average, according to the report. Again, migrant labour was one of the key reasons for rents rising at such an exceptional rate.
It is perhaps unsurprising, therefore, that investors are typically holding on to their existing properties, with the proportion of landlords selling property because of expired tenancies falling to 3.8 per cent the lowest figure in two and half years.