Letting agents 'may have to reduce rents'
News Category: Industry News
Published: 11-Dec-2009
This article was brought to you by Rentman the premium rent management software.
Letting agents have been warned they may have to reduce rents in light of new statistics from the Council of Mortgage Lenders (CML).
CML revealed that the numbers of loans being taken out to fund house purchases reached 55,000 in October, their highest level since December 2007 and 140 per cent higher than in January this year.
Jonathan Moore, director of easyroommate.com, stated that first-time buyers were particularly benefiting from the upturn in the amount of loans being approved by lenders, with around one-third more securing loans than at this stage in 2008.
He said the rise would mean fewer people competing for rental properties, making the market easier for tenants and harder for letting agents and landlords.
"There will be less competition … as buyers move out of the private rented sector," he explained.
"This should make it much easier for people to barter down rents when they're negotiating with letting agents."
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