Rental rates on the rise? Overview of the rental market 2009-10
publication date: Dec 1, 2009
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
Despite the number of people buying a home falling by half in the last 12 months, we have heard little about a different property market that has rocketed from a volume perspective and is currently signalling a rise in prices is on the way.
This year it’s estimated that the private rental sector will top (two million people) in comparison to the number of people buying (and selling) a home which has fallen to only 6-700,000.
Normally when property prices fall as they did in 2007 and 2008, rents increase. This was true up until September 2008 when we saw a sudden rush of frustrated sellers take down their ‘for sale’ boards and raise a sign ‘to let’! This dramatic increase in private rented stock caused rents to fall across the UK, and in some cases properties to lay empty for the first time.
Although this hasn’t been great news for landlords, letting agents have benefited from a booming business – especially in comparison to their estate agent cousins. Tenants too had a great time, picking where and what they want to rent while negotiating some fantastic rental deals.
Read on for Kate's overview of the rental market!
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