Home sellers 'moving into letting sector'

Posted: 19 Aug 2008 11:37:53 GMT

            Property News - Home sellers 'moving into letting sector'

With many sellers waiting for house prices to pick up before placing their properties on the market, a growing number are choosing to rent them out to tenants in the mean time, according to new research.

The Royal Institution of Chartered Surveyors (Rics) found that new instructions to let increased dramatically in the three months to July, while those to sell fell slightly.

About 43 per cent more chartered surveyors reported a rise than a fall in landlord instructions, up from 30 per cent in the previous quarter.

During the second quarter, both new instructions to let flats and houses increased at the fastest ever rate since Rics began taking the survey, with 47 per cent and 39 per cent more chartered surveyors reporting a rise than a fall respectively.

James Scott-Lee, a spokesperson for the institution, said: "The lettings market is booming with many vendors opting to rent their property while sales in the housing market continue to dry up. Many are willing to 'hold' and await the return of capital appreciation.

"Becoming a landlord is now an increasingly profitable option with rising rents and yields offering good returns."

In news that will affect new landlords, the Law Commission announced plans last week to tighten regulation in the buy-to-let and private rented market.

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