Lettings increase at the fastest pace ever
- 20th August 2008
- Landlord Property News
The Royal Institution of Chartered Surveyors July property survey has shown a marked increase in lettings, gross yields and rental income.
A recent survey from the Royal Institution of Chartered Surveyors reports that the lettings market is booming. New instructions to let have increase at the fastest pace in the survey's history with both new instructions to let houses and flats up at 47% and 39% respectively. Surveyors believe that many vendors have been letting their property due to the lack of demand in the property market.
Interestingly, demand for family homes has remains stronger than for apartments with surveyors reporting a 43% rise compared with 34% for apartments.
Rents have also continued to rise with the knock on effect of increasing gross yields and keeping landlords committed to the letting market. The proportion of landlords opting to sell fell to 2.1%, the lowest recorded level, from 4.2%.
James Scott-Lee, spokesperson for RICS, says: "The lettings market is booming with many vendors opting to rent their property while sales in the housing market continue to dry up. Many are willing to 'hold' and await the return of capital appreciation.
"Becoming a landlord is now an increasingly profitable option with rising rents and yields offering good returns. Established investors have been reaping the benefits of the housing downturn for sometime and will continue to do so in the short term. However, ever increasing supply could have an impact on rental growth as tenant options increase."
The lettings market is booming.
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