Rental returns dip slightly as 'accidental landlords' join the market

Posted: 18 Mar 2009 10:10:02 GMT

The cost of renting a home in the UK has fallen by an average of two per cent over the first quarter of the year, newly-released figures show.

With uncertainty continuing to surround the UK property market, growing numbers of people are opting to rent out their homes rather than selling them.

And it is this boom in 'accidental landlords' which has been cited as the main factor behind this slight drop in rental yields, with average rents down by 3.6 per cent in London and 2.9 per cent and 2.7 per cent in Manchester and Brighton respectively, the figures published by Gumtree show.

Commenting on the trend, television property expert Sarah Beeny said: "In the past two years more and more people in the UK are becoming landlords, whether it's because of recent redundancies, expanding families or an inability to sell at a level people wish to.

"Current unbelievably low interest rates also mean people are not having to sell and can afford to move and rent out their current property to cover their mortgage instead," she added.

Meanwhile, a recent report from Which? concluded that many Britons are now waiting patiently for an economic recovery before they get back into the property market.


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