Wednesday, September 15, 2010
Rents on the up?
The future looks bright for the buy-to-let sector as demand rises but there is a sting in the tail. The number of new tenants signing up for rental property hit a new high in Q2 according to Countrywide. And a record 20,000 new entrants were welcomed to the rental market in July. This increased demand is in stark contrast to the number of rental properties coming to the market. Excess demand has pushed up average rents, with four-bedroom family homes seeing the greatest price rise of 4% compared with Q1 to reach Â£1,090 per calendar month. But the bad news is that landlords are struggling to find the financing to take advantage of increasing tenant demand and rising rents.