'Rental demand will rise, but no mad rush'

Property specialists have claimed that rental demand is likely to rise over coming months, but stopped short of predicting a mad rush for property in London or elsewhere.

Landlord website LandlordZone.co.uk said that property rental was one of the only options open to many people, with repossessions adding to the ranks of rental seekers, and discouraged first-time buyers also shelving purchasing plans under current conditions.

National Homebuyers recently reported that Britain's obsession with owning property may be coming to an end, with many London areas pricing out first-time buyers and helping to create a new tendency to rent.

Tom Entwistle, editor of LandlordZone.co.uk, said: "Overall, there may be a slight rise, but I don't see a mad rush. It is supporting the properties that are available, and the demand is reasonable in most areas.

"You also have the predicted rise in repossessions, and there's definite evidence of this coming on a considerable scale - anyone affected is going to be looking for somewhere to live and renting is likely to be the only option here."

He added that an oversupply of apartments in inner city areas could help ease demand, as well as offering potential bargains for rental property-seekers and prospective buyers.

News posted on 20th December, 2007