Weak property market sparks renting boom

A lack of demand in the property market has pushed up interest in property to rent in London, according to a latest survey.

Research by the Royal Institution of Chartered Surveyors (RICS) has found that new instructions to sell have dramatically fallen in the last two months.

However, the report also revealed that 43 per cent more chartered surveyors reported a rise in landlord instructions compared to just 30 per cent in the last quarter.

New instructions to rent houses and flats increased at the fastest pace, with 47 per cent and 39 per cent more surveyors reporting a rise than a fall respectively.

"The lettings market is booming with many vendors opting to rent their property while sales in the housing market continue to dry up," said RICS spokesman, James Scott-Lee.

"Becoming a landlord is now an increasingly profitable option with rising rents and yields offering good returns," he went on to say.

Mr Scott-Lee concluded that established investors are now "reaping the benefits" of the housing downturn by making the most of rental income.

Figures show that the proportion of landlords opting to sell at the expiry of their tenant lease fell to 2.1 per cent - the lowest level on record.

Published 19th August, 2008

© 2008 Estates IT Limited