Reluctant landlords hit rental market

News Category: Industry News

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Average rental values have dropped by up to ten per cent during the last quarter, which has outpaced the nine per cent fall in house prices.

According to figures compiled by estate agent Douglas & Gordon, landlords with large properties have seen the biggest drop, including up to 20 per cent in some areas.

This compares to one and two-bedroom residential letting properties where rents have declined by only five or six per cent.

Michael Hodgson, from Douglas & Gordon, told the Daily Telegraph that market activity is "skewed towards the lower end of the market" which means that "bigger, more expensive properties are renting out for less".

"The market for long-term investors has been messed up by reluctant landlords," he continued. "If you want to move house, I think you should get on and do it now."

A study conducted by the Royal Institution of Chartered Surveyors has indicated that a surplus of available properties is a possible cause for the fall in rents.

The organisation reported that the net balance of surveyors receiving new instructions to let flats and houses has now reached a historically high level.

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