Average 1.5% increase in rental market
- 6th August 2008
- Landlord Property News
The rental market is remaining strong with average rents increasing by 1.5% from the start of the year.
The recent House Price Index Report released by haart shows that while the average rent rise has been 1.5% some areas have seen rises of 2% between May and June.
Russell Jervis, managing Director of haart, says: "Investors are capitalising on the current market condition. Cash rich investors are buying properties at competitive prices and benefitting from increased yields, as demand for rental property continues to grow with potential buyers continuing to sit out of the market."
In London Hackney has seen the highest increase over the past seven months with rents increasing as much as 5%.
Mr Jervis continues: The rental market is still strong and is helping to underpin the housing market, as demand for rented accommodation remains high, with rents increasing again in July." However he warns Landlords, "In some instances, with rents being pushed up so high, a mortgage is probably even becomng a cheaper option."
Demand for rented accommodation remains high, with rents increasing again in July.
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