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Buy to let property insurance customers 'will definitely see rents rise'
20 Jul 2010
Posted by Jonathan Walker
Average rental prices are "definitely" going to rise as a result of the increased number of tenants seeking accommodation, an expert has said, which could be comforting news for buy to let property insurance policyholders.
Recent statistics from Countrywide suggested that June saw a record number of 18,000 tenants registering for accommodation – up 22 per cent from the month before.
The total number of new tenants registering for private rented accommodation in the second quarter of 2010 was recorded at more than 50,000 – a 16 per cent increase on last year.
Mark Garner, managing director at LettingZone, said: "Demand will keep on increasing and unfortunately supply is lagging behind it, so the pressure on rents will go up and [therefore] rents will go up over time, definitely."
He added, however, that some buy to let landlords may resist boosting their rental prices due to fears of losing their current tenants.
FindaProperty.com reported in June that rental yields had increased from 4.53 per cent in March to 4.57 per cent in June.
