Rents fell during the last three months as the lettings market was flooded with property that had failed to sell, figures showed today.
The Royal Institution of Chartered Surveyors said many frustrated would-be-sellers opted to rent their homes after failing to secure a deal on them, causing the supply of rented property to outstrip demand for the second quarter running.
Good news for renters
Demand for rented accommodation remained positive during the three months, as potential buyers continued to sit on their hands in the hope of benefiting from further price falls.
But the rate at which demand is rising has eased, suggesting that many people have already taken the decision to rent rather than buy.
RICS reports a dramatic rise in the number of both flats and houseson the rental market. The influx of supply has forced down rents, causing them to drop for the first time since April 2003.
Which? Money editor Martyn Hocking said: ‘This is of course good news for those looking to rent but more bad news for homeowners looking for alternatives to selling in the current downturn. However, the RICS report also expects the housing market to bounce back with the next 2 years, so it may be best to sit tight and wait it out if you can.’
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