Rents on UK residential property continue to rise
News comes as a welcome boost to landlords

A recent survey by the Royal Institution of Chartered Surveyors (RICS) showed that rents on UK residential property is rising strongly as potential first-time buyers find it difficult to get on the housing ladder. In addition the number of new landlord instructions has also hit its highest level for years.

Although the RICS survey does not provide accurate figures showing rent paid by tenants, it is the latest piece of evidence that the rental market is moving in the direction of the landlord.

Residential rents fell in 2002 and 2003 but have since gathered momentum. In London, in particular, tenants in good areas are paying in the region of 12 per cent more than a year ago, according to figures from Knight Frank.

This data will come as good news and a welcome boost to landlords, many of whom have seen their finances stretched after the numerous interest rate rises.

According to RICS, the number of landlords selling their properties at the end of the lease has edged up to 6 per cent. However, this is to be expected as interest rate rises may be having a greater affect on the more novice landlords, but those who have a more comfortable equity cushion are likely to be riding out the rate increases and will be largely compensated by firmly rising rents.

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This article is for your general information and use only and is not intended to address your particular requirements. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without appropriate professional advice after a thorough examination of their particular situation. Your home may be repossessed if you do not keep up repayments on your mortgage.

Article date: 09.07