Rental demand increases

Posted: 05 Mar 2008 10:50:17 GMT

Demand for rented accommodation increased in the final quarter of 2007, spelling good news for UK landlords.

Demand for rented accommodation increased in the final quarter of 2007, spelling good news for UK landlords.

The Royal Institution of Chartered Surveyors (Rics) has published its Lettings Survey, revealing that rental yields also increased in that time.

According to the survey, 16 per cent more chartered surveyors reported a rise rather than a fall in tenant lettings in the last three months of last year.

Renters are typically looking for houses rather than flats, according to Rics, with this being blamed on an oversupply of new build apartments.

Landlords were more inclined to remain in the market in the final quarter of 2007, with only 4.6 per cent intending to sell their properties once the tenant leases expire.

This is down on the 6.5 per cent of landlords who had the same intention in the third quarter of the year.

"While banks remain cautious about offering loans, demand for rental property will continue to increase with many would-be-buyers unable to make the jump to home ownership," said Barry Hall, Rics spokesman.

"Established investors continue to reap the benefits of the current uncertainty in the housing market and have been enjoying the fruits of rising rents," he added.

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