Slowdown in lettings demand reported

Posted: 30 May 2007 11:01:13 GMT

There has been a significant slowdown in demand for rental property in the first three months of this year, the Royal Institution of Chartered Surveyors (Rics) has reported.

There has been a significant slowdown in demand for rental property in the first three months of this year, the Royal Institution of Chartered Surveyors (Rics) has reported.

According to the organisation's latest residential lettings survey, demand from tenants has fallen since the beginning of the year, with just 16 per cent of surveyors questioned reporting an increase in demand.

This compares with the 28 per cent who reported growth in demand in January.

Rics further reported that growth in demand for lettings fell to its slowest level since 2005 in the first quarter of 2007.

Recent increases in interest rates have been blamed for the fall-off in demand, with landlords being forced to raise their rents in order to cover their mortgage repayment costs.

Commenting on the trend, Mark Wilson from London property company Globe Apartments questioned whether this would have a long-term impact on the market.

"Our market has slowed over the past months, as a result of less enquiries," he said.

"Can the market sustain the rent hikes? We will need to wait and see."

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