UK rental market activity continues to grow
Property professionals
27th August 2010
Continued activity is being witnessed in the UK's lettings market, new figures show.
A report by the Royal Institution of Chartered Surveyors (Rics) reveals that tenant demand is growing and rents are being pushed up by a shortage of residential properties, lending constraints and concerns regarding a possible double dip in house prices.
According to the body's residential lettings survey for July 2010, the sector "remains buoyant", with 26 per cent more professionals reporting they have seen demand increase than claimed they had seen it fall.
It marks the second quarter in a row that demand for rental properties has increased at a rate above the long-run average, with all regions seeing growth in activity, in particular east England and London.
Furthermore, surveyors expect conditions to remain strong during the coming quarter, with 33 per cent more respondents forecasting rent increases than anticipate falls.
Chairman of the National Landlords Association David Salusbury said that the Rics survey results "point to strong demand for rented property", although he cautioned that landlords are seeing higher rental arrears and are concerned about falling Local Housing Allowances and rising Capital Gains Tax.
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