Recession could lead to higher rents

News Category: Industry News

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Letting agents and professional landlords could profit in areas where smaller rental property operators are leaving the market, it has been suggested.

According to an article by FinancialAdvice.co.uk, the economic downturn, which has caused some buy-to-let borrowers to default on their payments[comma] could allow more financially-solvent operators to benefit.

In areas where landlords and estate agents exit the lettings market, rental yields for those remaining in the sector would increase or at least bottom out, the group commented.

"The balance between supply and demand may become more advantageous for landlords in the near future, provided that this trend continues," the article added.

Residential lettings could prove trickier in areas where rental properties have flooded the market, the article added.

Letting agents looking to bolster their operations during the credit crunch might consider property software.

An Arla spokesperson has predicted local lettings markets to "vary tremendously" during the new year in light of the effects of the recession on the UK property sector.

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