House sales slump pushes homeowners to rental market

Posted: 22 May 2008 11:12:21 GMT

As the housing market slows an increasing number of homeowners are turning to the rental market to take advantage of an increase in demand and rising rents.

As the housing market slows an increasing number of homeowners are turning to the rental market to take advantage of an increase in demand and rising rents.

A survey by the Royal Institute of Chartered Surveyors (Rics) published today (Thursday, May 21st) revealed that 29 per cent of surveyors reported a rise in new landlord instructions in the first quarter of 2008 compared to minus two per cent in the previous quarter.

Commenting on the figures, James Scott-Lee, Rics spokesman said: "The sales market's loss is the lettings market's gain. Some would-be sellers are retreating from selling and letting or re-letting their properties as they wait for mortgage lenders to offer buyers more favourable lending criteria."

According to the Rics survey, the demographic of those renting has changed as demand for family homes and flats have increased.
The Rics has suggested this change in the profile of those that rent is due to buyers being refused mortgages.


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