Insurance News Archive

High rental demand 'should not surprise buy to let insurance holders'

Posted by Jonathan Walker

Mortgages are still not obtainable for the majority of first time buyers, so it is not surprising that rental demand is so high, according to one advice website.

This follows research by the Royal Institution of Chartered Surveyors (RICS), which found that the lack of supply is pushing rents higher, signalling a revival in the lettings market.

Tom Entwistle, director of LandlordZONE.co.uk, said that despite the outstripped supply of properties, rents are likely to stay constant.

He said: "With mortgages still out of reach of the average potential first time buyer, and uncertainty on the jobs front, it's not surprising that rental demand remains strong in most areas."

Mr Entwistle suggested that the economic instability brought on by the euro crisis and the uncertainty of a new government, the future of the housing market is unknown. "Rents should at least hold steady," he added.

The RICS study found that the net balance of chartered surveyors reporting rising rather than falling rents went from zero to 30 per cent – a contrast to last April when 58 per cent more members were seeing rent reductions.

28 May 2010