Tuesday, Aug 19, 2008
Supply of rental accommodation rose at its quickest pace on record in the three months to July,
FT: UK homes for rent exceed demand
Estate agents in London and the south-east have already started to see rents come under pressure as competition between new landlords becomes fierce.
Agents such as Savills and Knight Frank have reported sharp price falls for some rental accommodation, particularly in prime areas of London.
“We feel rents have come down as supply has come through from the sales market,” said Jane Ingram, head of lettings at Savills. “It has been much more of a tenants’ market.”
She said the reduction in rents – which had been as much as 10 per cent in some areas of London and the south-east – had meant landlords were not obtaining the high yields they might have been hoping for.
Posted by pdp @ 12:46 AM (433 views) Add Comment
6 Comments
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1. mark wadsworth said...
Super.
2. Si said...
So when's the rent reductions going to come to Bristol?!
I'm seeing studios priced at £550, higher than some nice proper flats (by which I mean separate living room to kitchen, nice decor etc.)
Needless to say I think that's a little optimistic.
I'd like a half decent flat sub £500 please!
3. Davros said...
So let me get this straight, there is a shortage of property in the UK, yet there are too many houses to sell and too many houses to rent.
Doesn't really sound like a shortage then does it?
4. tinker said...
The good old Beeb...
This RICS press release as reported on Ceefax and it basically says whilst there has been a large increase in the number of properties to rent, RENTS HAVE GONE UP because this increase has been surpassed by the increased number of renters.
This doesn't make a lot of sense... more supply (rental properties) should cause rents to fall!
This is what the unknowing public reads, Beeb/Ceefax wisdom could as ever colour their judgement.
5. Island Of Sanity said...
have a look at the spin that Property week put on the survey compared to FT. The property week talks about landlords being delighted with rising yields, with little mention of falling rents in London and South-East. Yields are a red herring as even if both rents and prices fall (which is bad for landlords), the yields can still rise as long as the prices fall faster than rents
6. need-a-crash said...
@3. Davros
Well said and spot on!