Insurance News Archive
Top-end rental prices 'could slowly increase again'
Rental prices at the top end of the market could begin to increase as the number of "unplandlords" begins to decrease with house sales picking up again, according to an expert.
Keshav Thukaram, managing director of smartlandlord.co.uk, says any rise is likely to occur at a slow pace as long as the economy remains fragile, however.
He suggests that the continuing inability of first-time buyers to secure mortgage financing is also affecting the market.
"This means that rental demand for smaller homes remains strong, but supply is also high as owner-occupiers on the bottom rung continue to rent out their unsellable properties," he explains.
Mr Thukaram adds that rising unemployment levels among tenants remains a concern for landlords and he advises them to take out rent guarantee insurance against late payments and defaults.
Recently, experts at the Land Data Great Housing Market Debate predicted that the rental market will boom this year as young people are forced to remain tenants for longer in the current economic climate.
29 Apr 2009
