Glut of properties to rent drives down prices

Posted: 19 Nov 2008 11:54:34 GMT

The Royal Institution of Chartered Surveyors (Rics) Wales has published a report showing that a high number of homes going unsold are being put on the rental market, creating a dip in rental prices.

The average sale time of a home in the UK is now just short of 12 weeks, and rather than wait for buyers, many homeowners are instead deciding to let out their property.

The latest Rics Wales figures show that new instructions to let rose by almost two thirds (57 per cent) in the second quarter of this year.

Rics Wales director Cathy McLean said: "The marketplace has become more and more competitive as many vendors have been forced to become amateur landlords, creating an inevitable downward pressure on rents where supply has matched demand.

"With national average house prices set to weaken in 2009, yields may increase for those investors who can provide the right product for the right marketplace."

Estate agents will no doubt be struggling under the diminishing number of houses for sale but homeowners still hoping to sell their properties may save money by using alternative methods to an estate agent.

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