Rental market showing signs of stabilising

The ARLA members' survey of the Private Rented Sector for the first quarter of 2009 reveals more than double the number of agents reported that landlords were buying properties than in the previous three months, It would appear from this that investors are feeling more confident despite numerous reports of an over supply of properties in certain areas driving rents down.

According to the March Findaproperty Rental Index the rates at which rents are falling and the volume of stock rising has slowed over the past three months. With rental prices falling just over 0.4% in March, as the lowest fall for six months it could signal that the UK rental market may be reaching the bottom of the cycle.

Simon Bacon of Preferential Properties comments that it has been noticeable that over the past few months many applicants have been making offers on properties as there have been an increased number of properties for them to choose from. However those properties that are well maintained by landlords have generally continued to achieve previous rental values. In a challenging market, continuing to invest in your property insulates you against these market vagaries and helps to reduce any loss of income arising from void periods.

Back to News Page