House price growth could be slowed by increased rental opportunities

News Category: Industry News

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Landlords may be interested to know that demand within the rented accommodation sector may help to dampen house price growth, it has been claimed.

Jacqui Daly, director of Savills, said that as house prices increase, so too does the demand for rental housing as more people are "pushed out of the market.

However, there are many people choosing to rent, in addition to immigrants, who are boosting demand for private rented accommodation, the expert suggested.

A recent survey by the Association of Residential Letting Agents found that the supply of rented properties could potentially create problems.

The association's most recent quarterly survey of the buy-to-let sector revealed that demand for such properties continues to outstrip supply.

"By increasing investment in rented housing you will, ultimately, increase the supply of housing. And more housing is going to reduce the amount of house price growth," she commented.

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