Rents stabilising in some areas, Arla study finds
News Category: Industry News
Published: 09-Dec-2008
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Rents are stabilising in some areas of the UK after letting agents and landlords have snapped up properties at bargain properties, it has been suggested.
According to Arla's fourth-quarter survey of the residential lettings market, values for rental houses rose by 1.5 per cent outside London and the south-east, while capital values for flats fell by 3.8 per cent during the three-month period.
Ian Potter, head of operations at Arla, commented: "This suggests that the oversupply of new-build flats in some areas may be coming to an end as local authorities, housing associations and bargain hunters take up the slack."
He added that this trend has also lead to the stabilisation of rents in some areas.
It comes after a Rics survey published last month recorded the first fall in rental prices for five-and-a-half years.
Falling property prices and a significant rise in the number of homeowners becoming landlords - rather than selling their properties at depressed prices - were the reasons cited for the decline in rents.
