Larger and more expensive properties are entering the rental market, as family homes fail to sell – signalling a new rise in accidental landlords.
Nearly four in ten ARLA agents (39%) are reporting a rise in higher-value property coming on to the market because it cannot be sold.
Two-thirds( (66%) of ARLA agents are reporting an increase in semis being made available for rent, and 63% are reporting a rise in detached homes available for rent.
ARLA says that during the first three months of the year, there was an 11.6% increase in the average capital value of rental houses, from £401,400 to £447,900. The last market peak was £442,600 in 2007.
Unsurprisingly, the rise in capital values was driven by London and the South-East. Elsewhere, the value of rental properties coming on to the market actually dropped, by 5.2%.
ARLA also says there has been a rise in the average capital value of rental flats, from £258,500 to £267,400 (a 3.4% increase). Again, this occurred mainly in central London (4.7%) and the South-East (4.4%), with a 1.7% drop elsewhere.
If the figures are correct, it means that ARLA agents are handling houses and flats worth far more than the average UK value of a home currently being sold: the Land Registry, Halifax and Nationwide all put actual sale prices at around £163,000.
The statistics were gathered from 529 ARLA members’ offices.
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