Rents 'will remain high' in the coming months
4th Nov 2011
The cost of staying in property to rent in London and other areas of the UK is unlikely to fall any time soon, according to one specialist.
Stephen Ludlow, a rental property expert, said there is no indication that rents are going to fall in the near future, as demand is as strong as it ever was.
He explained that London does not have enough private rental properties to even come close to meeting the "huge" demand that is currently out there.
The expert said that "chronic shortage" in properties is being driven by the inability of first-time buyers to afford the deposit requirements lenders are asking for.
"Not enough new homes are being built and the pipeline of new build residential developments is looking pretty empty. With banks unwilling to lend to property developers, that is unlikely to change soon," Mr Ludlow added.
He also noted that, in London, there are no signs of demand in the rental market abating, so rents are likely to remain high by historical standards and could even increase further.
Is comes after Gary Hall, a partner at property market analyst Knight Frank, predicted that the cost of staying in property to rent in the UK will only continue to rise in the coming months and years.
© Zoopla Property Group Limited