Popularity of rental accommodation 'is increasing'

Posted: 24 Feb 2009 11:24:38 GMT

Buy-to-let investors and landlords are likely to see a greater demand for their products over the coming months, it has been claimed.

According to the National Association of Estate Agents (NAEA), increasing numbers of people are opting to rent homes during the economic crisis.

Analysis from the group suggested that consumers are opting to lease houses during the property slump, even though property prices have fallen by about 15 per cent in the last year.

Chris Brown, NAEA president, said: "The rental market by comparison to the sales market is doing very well."

Consequently, those who make a property investment might be able to make a good return on purchases by letting homes out to tenants.

On the other hand, investors who might want to sell property in the near future could find that London is the place to buy as asking prices rose 1.2 per cent in January, according to Primelocation.com's House Price Index.

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