Housing market provides some comfort for landlords

Posted 2007-12-18

Data released by the Royal Institution of Chartered Surveyors (RICS) shows that the slowing housing market has increased rental growth.
The difficulties for first time buyers to step on the property ladder has led to a rise in rented accommodation. The strong rental market and continued economic uncertainty means that the outlook is good for landlords. Jeremy leaf, a spokesman for RICS said:
“With rents still on the increase many would-be-buyers will find accessing the housing market even more difficult as they struggle to raise the capital for that first important purchase.  However, many landlords will still take solace from uncertainty in the economy and enjoy the gains from rising rents.”
RICS most recent quarterly Lettings Survey showed that the demand for family homes was higher than that for flats as the market for the latter has become saturated.  Compared to the second quarter of 2007, 25.2% more chartered surveyors reported a rise in the demand for rental houses in the third quarter of 2007.
However, due to stronger lending criteria and successive interest rate rises, there is some uncertainty in the buy-to-let market.

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