Balanced market brings stable rental prices
- 7th September 2009
- Buy-To-Let Property News
Growing strength of housing market suggests rent declines are a thing of the past.
Statistics released by LSL property services suggest that rental costs have increased 0.5% since July. The data is based on 18,000 rented houses in England and Wales.
A more balanced market has put landlords in a better position to raise prices since the decline of the last quarter. There are suggestions that this has been aided by the decreased number of 'reluctant homeowner landlords' entering the rental market temporarily.
Stephen Ludlow, Director of ludlowthompson commented: "Now there are no longer homeowner landlords entering the property market, the supply and demand balance has become more equalised.
"This is great news for landlords, however it is just a sign of the market equalising. So landlords should not rush to put up rental as it is vital that rents remain affordable."
The news also remains good for tenants, who on average are still paying 4.5% less on rent than the same time last year. Tenant rental arrears also declined in June, from 11.6%, from 11.2%.
While yields have fallen slightly by 0.02%, the voids between tenancies has fallen on average by 2.5 days, overall signalling a positive outlook for buy-to-let investors.
landlords should not rush to put up rental as it is vital that rents remain affordable.
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