Property rental prices 'historically low'

Posted: 26 Aug 2008 09:50:02 GMT

Tenants looking for property to rent are in a good position because prices are relatively low at the moment, it has been claimed.

According to mydeposits.co.uk - a government authorised, tenancy protection scheme which acts as a third party in cases of tenancy deposit dispute - rental prices are a function of the current economic situation and are, historically speaking, relatively low at present.

David Salusbury, chairman of the service, explained: "Rents are not historically high; in fact, if anything, one could make a case for them being low because rental yields are actually quite low at the moment."

He argued this is actually because property prices are higher than they should be, adding that the credit crunch is now adjusting the value of homes.

"Whether or not that will have an effect on rents is a different matter because rents will be as much a function of supply and demand as anything else," Mr Salusbury concluded.

Meanwhile, a new study from Halifax has revealed that students pay an average rental fee of £75 a week for accommodation, compared to £40 spent weekly on food and £20 on alcohol.

The south-west was the most expensive in terms of rents (£90), while northern Ireland was the cheapest (£31).

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