Sunday, January 25, 2009
Spare rooms compete with reluctant landlords, forcing down prices
"Hard-up homeowners trying to let a spare bedroom is being pinpointed as one of the factors keeping down rental prices, says Spareroom.co.uk. [No vested interest there...] It found that average prices in the UK fell 0.5 per cent during December. The number of overseas workers coming to the UK has plummeted owing to the weak pound and a tough jobs market. And companies are no longer moving employees around the country to the same extent: a key driver of the market. Added to this, 27,000 more homeowners took in a lodger last year to cope with pressures on household income and meet mortgage repayments. We expect at least another 35,000 households to take in a lodger this year, adding to the supply. Rents are likely to be under pressure for some time".