Property rental prices set to rise?

Posted: 21 Jul 2010 11:19:52 GMT

The increased number of tenants means rental prices will definitely rise.

That is the view of Mark Garner, managing director at LettingZone, who said requests for property are still on the up.

"It is always about supply and demand, so when there are too many rental properties – as there were a while ago – rents go down and when there are not enough, rents go up," he added.

However, he indicated some landlords may not raise the rent for some clients as they will not want to risk losing them.

Mr Garner's comments follow the release of figures from Countrywide, which revealed 50,480 new tenants registered for rental accommodation in the second quarter of this year.

The steepest intake was recorded in June, with 18,000 registering – the highest since records began.

And FindaProperty.com recently found the average rent increased by 2.3 per cent in the second quarter of this year, rising from £820 per month to £839.


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