Sell-to-rent 'becoming a popular option'

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As house prices in the UK begin to slip more people are considering selling and then renting, a leading estate agent has suggested.

London-based Sourcing Property said that there was a growing trend for people to sell-to-rent as they waited to see what would happen to property prices in the future.

Jo Eccles, director of the company, explained: "One client is selling his property in Lancaster Gate through Foxtons for £1.45 million with the aim of moving into rented accommodation.

"If he puts the money into a savings account, he could generate more than £85,000 per year in interest - enough to rent a fantastic property while he waits to see what the market does."

In addition, Ms Eccles said that more people were looking to renew their current rental contracts as they too waited to see what house prices would do.

"A lot of tenants are renewing rental contracts to see what happens in the resale market. At the same time, landlords are being more insistent on longer tenancy periods, tying people in to 12 or 18 month contracts," she pointed out.

"While short-term lets can be more lucrative for landlords, many want the stability of long term tenants."

A recent report by Rightmove showed that house prices in the UK dipped by 2.6 per cent in September.

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