Rental Market Boosted

The slowing of the housing market and economic problems have helped boost the rental demand

New buyers have been put of buying by the lack of property for sale and rising prices.

29% of surveyors said they had had a rise in lettings up from 15% last quarter. The coming months are expected to show a record growth. Flats are likely to be the main rental growth as first time buyers wait to see how the market is affected by the interest rates.

By to let investors have been able to cash in on the economic uncertainty which has led to rent rises and the increase of demand for rental properties. The rise in tenants is partly due to first time buyers waiting longer to own property through either lifestyle or affordability.

Thriving buy to let

Over half of all buy to let investors are planning to expand their portfolios over the next year.

Most investment landlords said they were not prepared to sell if house prices were to fall but if the interest rate rose beyond making it a viable proposition around four out of ten said they were not sure what they would do.

It is considered that the loss of any private individual investors would affect the rental market and would greatly lessen the choice of housing.