UK Property Rental Market to Boom in 2011
According to the latest news article published by Belvoir, UK-based letting agency, the market of property rentals in the country will enjoy "near perfect conditions".
As such, Mr. Gonsalves, managing director of the agency, said that rents will increase throughout the year because "the Government’s Comprehensive Spending Review (CSR) will continue to impact on the private rental sector throughout 2011."
He highlighted that the forecasts are based on the monthly rental index by Belvoir, which showed that rent rates steadily increased by 3-5% last year. For instance, the latest index for December 2010 revealed that average rent rate across the UK amounted to £703.
Growth in rent rates combined with increased demand from families unable to get on the property ladder will "result in investment landlords being attracted back to the buy to let market," says Mr. Gonsalves of Belvoir.
He, however, expressed his concerns, over the possible return of accidental landlords – people unable to sell their houses – onto the British property rental market.
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It's going to be a difficult year for house prices in the UK with lending still tight, large deposits needed and unemployment set to rise from public spending cuts. However letting is going to significantly increase simply due to more renters.