Residential lettings are the housing industry's saviour

News Category: Industry News

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Residential lettings are proving to be the "white knight" of the housing market, according to the Association of Residential Letting Agents (Arla).

Research by the association suggests that the cost of rented houses has fallen by seven per cent, despite rental demand peaking at record high levels as a result of a contracting housing market.

Rent on apartments has also fallen by nine per cent.

Arla's head of operations, Ian Potter, claims that the falling prices are the result of more blocks of two-bedroom flats coming into the market.

He said: "In many places this has had a positive effect as it has allowed the rental market to provide stability in housing at a time of volatility in the sales market.

"As before in volatile times, the rental market is proving to be the white knight for housing as a whole."

Meanwhile, Michael Holt, managing director of SYH Charterhouse recently told the Financial Times Adviser that homeowners are in danger of being taken advantage of with sale and rent back schemes.

He said: "Too many consumers are still duped by unscrupulous mortgage rescue providers and often find themselves deeper in the financial mire as a result."


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