Rents driven down through unsold homes
Recent figures have shown that rental prices on homes are being driven down as a result of the many homes that remain unsold on the UK’s property market. Property sales have been very low over recent months, and although they have increased slightly over recent weeks due to more realistic pricing from sellers, they did recently reach average lows of as bleak as less than one property sale per week per agent.
Reports now claim that the plethora of unsold properties that have been left stagnating on the property market has resulted in an increase in the number of rental properties on the market, which in turn has driven down the cost of property rental.
The huge number of properties coming up for rent means that availability for tenants has increased, tenants have more choice, and in order to remain competitive and increase their chances of getting a tenant landlords have had to decrease rental prices.
Many people that are unable to sell their homes have decided instead to rent them out, and this has increased supply enormously, impacting significantly on rental prices, according to the Royal Institute of Chartered Surveyors.
An official from RICS said: “Frustrated vendors are placing their property on the market to let as they have been unable to agree sales due to a lack of demand in the housing market.”
Around 53 percent of RICS members in the London area have reported that there has been a drop in rental property prices as the number of properties up for rent increases, and there was in increase of 33 percent on those reporting reduced rental prices on flats.
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