Residential lettings activity increasing
News Category: Industry News
Published: 20-Feb-2009
This article was brought to you by Rentman the premium property management system.
After substantial interest rate cuts and falls in house prices throughout 2008, property firms in Henley, Oxfordshire are reporting increased activity in residential lettings while some first-time buyers (FTBs) are still struggling to get on to the property ladder.
Chris Ballard from property firm Ballards told the Henley Standard that reductions in the base rate by the Bank of England have encouraged investment activity, but those looking to buy their first property are unable to take advantage because of the lack of liquidity in lending from banks and building societies.
This comes after David Newnes, managing director of estate agent Your Move, recently said the credit crunch has closed the door on FTBs' hopes of buying property, because of its impact on mortgage finance.
As a result of this trend, "landlords are seeing [tenant] demand go through the roof", he commented.
Property agent David Tate also reported that residential lettings are seeing good returns, as well as offering long-term growth potential in capital values.
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