Rental market 'showing early signs of recovery'

News Category: Industry News

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Letting agents will welcome news that asking rents on domestic property showed signs of stabilising this month, potentially demonstrating signs of recovery for the rental market.

FindaProperty has published its latest monthly Rental Index, demonstrating that the average asking rate in May remained unchanged at £819 per calendar month, having previously declined month-on-month since August 2008.

Asking rents rose in a number of regions including the south-east, Scotland and the West Midlands, with London demonstrating a 0.4 per cent growth.

Andrew Smith, head of research for FindaProperty, said: "A slowing in the increase of supply and signs that asking rents are beginning to stabilise indicate that we may be close to the bottom of the rental market."

Average asking rents still remain 5.5 per cent below their May 2008 rates and the flat leasing industry continues to suffer in comparison to the housing market, demonstrating increasing supply and falling rents.

Nevertheless, the figures are the latest in a series of indicators that the property market may be in recovery, with April analysis from the National Association of Estate Agents demonstrating an increase in property sales.

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