The number of people renting a home has soared by nearly 20% during the past three months as the housing market turmoil puts people off buying a property, a survey shows.
LoughboroughEcho.net – Sep 9 2008
Around 64% of letting agents outside of London said demand for rental property outstripped the number of homes they had on their books, falling to 41% within the capital, according to the Association of Residential Letting Agents (ARLA).
Unsurprisingly, given the boom in demand, rents are also rising, with average rents for a house increasing by 3% to £387 a week during the three months to the end of August, while rents on flats have jumped by 7% to around £253.
At the same time, the average amount of time a property is empty has fallen to just four weeks or less each year, while tenants are now staying in properties for around 16.7 months, rising to more than 18 months in London. Full Article
This reflectes what we are seeing in Central London. The increase in demand is mostly for cheaper flats. Some erstwhile first time buyers are delaying buying decisions, and some people who have sold are taking a break from being owners to being tenants. One trend is towards sharers renting. Three bed flats that were let to families a year ago at £600 pw + are being snapped up by professional sharers as studios and one beds become rarer – and more expensive.
Comment by Barry — 10/9/2008 #