Rents to rise as number of let properties looks set to fall in 2010.
The recent pick up in the housing market led to the first fall in the number of new properties available to rent since January 2008, according to the Royal Institution of Chartered Surveyors.
New instructions during the three months to the end of October were at their lowest level since the survey was first launched in 1998, with 11pc more surveyors reporting a fall than those who saw a rise.
But the low level of available properties, probably triggered by so-called accidental landlords now being able to sell their homes rather than having to let them out, boosted surveyors’ optimism for the first time since July 2008.
Around 22pc more surveyors said they expected rents to rise during the coming three months than those who expect further falls.
A balance of just 4pc of surveyors reported falling rents during the three months, suggesting the downward pressure that had been caused by the imbalance of supply and demand is already beginning to ease.
In London and the North the majority of surveyors are already reporting seeing rent rises.
Meanwhile, demand for rented property continued to increase, with 16pc more surveyors reporting a rise, with demand for houses particularly strong.
RICS spokesman Jeremy Leaf said: “It seems the current upward trend in the housing market is having a more significant effect on the lettings market, with many of the accidental landlords returning to the sales market to take advantage of the recent price increases.
“As a result the recent oversupply is reversing, with new instructions at the lowest levels we have seen. This of course is impacting on prices and tenants no longer have as strong a bargaining power as they did.”
http://www.telegraph.co.uk/finance/personalfinance/
