Insurance News Archive

Rental prices starting to rise

Written by Michael Brown

Landlords are starting to see rental prices rise for the first time in around a year, according to new figures.

Data from FindaProperty.com show that the average rent in June rose by 0.5 per cent on May's figures, to £823.

Commenting on the figures, Stuart Law, chief executive at property investment advisers Assetz, said rents are "pretty firm" and there is still high demand from people who have been put off buying property.

The expert said the buying market is "gradually improving" and more people will purchase a property in the coming months, but this will not damage the rental market.

"What it will do is drive up prices on property, [but] the yields are going to fall even if rents stay the same," Mr Law added.

Talking about the rental market throughout the recession, the expert stated that there have been "wobbles here and there" but overall it has been "very firm".

24 Jun 2009