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Fall in property rents noted by RICS

August 4, 2009 by admin  
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According to recently released reports the Royal Institute of Chartered Surveyors has noted a fall in rents in the UK in the three months leading up to April.

The number of surveyors that reported a fall in rents for this period came in at the highest since records began back in 1999. During this period around 55 percent more surveyors and estate agents are said to have reported a drop in property rental prices.

With many homeowners unable to sell their properties due to the current climate and the lack of mortgage availability for those that might be interested in buying many have decided to put their homes on the market to rent instead, and this has caused a mass influx of rental properties on the market.

The increased number of homes for rent has resulted in increased competition, and landlords have had to drop their rents in order to remain competitive and increase the chances of getting suitable tenants for the property.

Scotland and London were amongst the areas that saw the most dramatic fall in rental prices. RICS has predicted that over the coming months rental prices will continue to come down, although this is likely to be at a slower pace than has been seen so far.

The data from surveyors indicated that rents have been falling at a faster pace than .

One official from RICS said: “Property transactions are starting to rise from very low levels and the influx of supply in the rental market has slowed as vendors begin to find buyers. Demand for rental property is still high but tenants have been able to take advantage of a flooded market to negotiate lower deals. Even so, the downward pressure on rents should ease in the coming months providing some good news for landlords.”

Tags: Rent control, suitable tenants, london, scotland, house prices, property prices, mortgage, rental market

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