Cost of renting a property falls
Recently released figures have suggested that the cost of renting a home in the UK has been falling, and this is as a result of a rising number of property owners putting their homes up for rent because they cannot sell them in the current climate.
Many homeowners are reluctant to sell up at the moment due to low house prices, and so decide to rent their property out instead, and many others have found that in the current climate they simply cannot find a buyer for the home, and so put it up for rent instead.
However, the upshot is that the soaring number of homes for rent that have flooded the market means that potential tenants have more choice and can enjoy better prices in terms of how much rent they have to pay.
Stiff competition amongst landlords has come from the increasing number of homes for rent, and in order to attract tenants landlords are having to be far more realistic with regards to the amount of rent they want the tenant to pay each month.
One industry official said: “Tenants are becoming more demanding as the market swings in their favour and landlords are now less likely to receive the uplift in rents at renewal that they might previously have achieved. Despite falling rents and increased competition, we do not expect investors to abandon the market.”
Another official said: “Many homeowners, worried about losing their jobs and struggling with debts accrued during the good years, are renting their properties and downsizing or moving to less expensive areas to hedge their bets.”
One lettings manager added: “The rental market is a localised beast and it’s important to understand that in some areas rents will have fallen by less, by more or even not at all.”
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