Uncertain property market 'boosts lettings'

Lingering concerns about the UK house market are providing a welcome boost to lettings in the capital, it has been suggested.

House prices have slowed down markedly over the past four months and - after a full decade of rampant inflation - are widely expected to level off or possibly even fall during 2008.

With first-time buyers thus concerned about the prospect of negative equity, not to mention the ongoing credit crunch which has made it increasingly difficult to secure a mortgage, many are reportedly turning to rental properties.

The latest research by estate agent Winkworth revealed that the vast majority of its offices in the capital are recording surging numbers of enquiries into rented properties.

"January saw our best month ever with incredible levels of activity supporting continued price growth," commented lettings manager of Winkworth Notting Hill. "Overall business was up by 20 per cent year-on-year, much of which resulted from new business."

She added: "The driving force behind this activity has been the uncertainty of the sales market - those who might otherwise be buyers have rented instead."

News posted on 20th February, 2008