Homeowners 'renting property rather than selling'

Posted: 22 Jul 2009 09:25:53 GMT

Many homeowners are looking into renting their property rather than selling in order to benefit from demand from tenants, according to new research.

Sainsbury's Finance revealed that around 3.187 million properties are privately rented in the UK - with an estimated total value of £541 billion.

In addition, falling rental prices mean that potential tenants are in an ideal position to find a bargain rental property and good quality properties can be let quickly if owners decide to let their homes rather than sell.

Lucy Hunter, landlord insurance manager at Sainsbury's Finance, said: "The market is now saturated with new rental properties as many homeowners look to rent their properties rather than sell."

Further data from Sainsbury's Finance that will be welcomed by homeowners suggests that the cost of running the average UK home remains reasonable, especially as mortgage repayments are now lower due to the record-low base rate of interest.

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