The latest RICS residential lettings survey reports rising yields on rental properties as a result of increased tenant demand and rising rents.
Surveyors whose offices handle lettings reported the now familiar picture of rising rents, improved yields and greater tenancy demand in the three months to October.
Tenants are turning to the rental sector not just because they are struggling to raise a mortgage but because they see renting as a safer option in today's uncertain economic climate, say RICS members.
The survey says that supply of rental property to the market remains unable to keep up with tenant demand, even though new landlord instructions did increase in the three month period to October.
It was the fastest pace of rising instructions since the three months to April 2009.
Surveyors noted that some properties, particularly family homes, are now coming to the lettings market after unsuccessful sales campaigns.
RICS spokesperson James Scott-Lee said: “The disappointing economic message communicated by the Chancellor in his Autumn Statement and the prospect of further job losses in some sectors and areas over those previously envisaged is likely to continue to underpin the residential lettings market in the near term.”
Comments
At the risk of incurring the wrath of Ajax as first poster and being negative, this just ain't true!!
Yes in terms of financial security and losing money if an owned property falls in price, but there is no security of tenure at all in assured shortholds and relatively little more in full assured tenancies if the landlord can rely on ground 1.
You can be the greatest tenant in the world but if the landlord wants his house back with mandatory provisions at his disposal I'm afraid there is no security.
You may struggle to pay the mortgage but as long as you do then the property cannot be taken away from you. Pay the rent, look after the property, treat it as a palace and you can still be forced to move a week before your kid sits their A L:evele - where's the security and safety in that?