Residential rents on the increase
5th Sep 2012
Residential rents have increased by 4.3 per cent this year and are set for further rises, according to new research.
The Royal Institution of Chartered Surveyors (RICS) said that they are likely to go up another 3.9 per cent because of the increase in demand for properties to rent.
The body’s residential lettings survey for the second quarter of 2012 found that in the three months to July, tenant demand continued to grow faster than the rate of supply. However, the RICS says there are strong regional variations.
UK rental expert Maria Lucas said that although there were often delays in tenants signing up for properties, demand was still strong.
She said: "There is huge demand from tenants outweighing the supply of residential rental property around Banbury for rent of £1,000 pcm or less. Above this rent level, there is still good demand yet certainly less people around than 12 months ago."
"Properties are letting well, just later than they used to."
Strong tenant demand has also helped to fuel the increase in landlord confidence, with the new Buy-to-Let Index showing that four in ten landlords expect rents to increase in the coming 12 months, with just one in a hundred investors expecting they will reduce rents.
Posted by Staff Writer: Frances McDonald
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