The cost of renting a property has fallen during the first three months of 2009 as ‘accidental landlords’ flood the market, research showed today.
Property website Gumtree.com said that average rents had dropped by 2.2% across the UK, with rents in Oxford – the worst affected area – plunging by 6%.
If you’re looking to rent out a property to prospective tenants, the Which? buy to let guide may help you.
Flood of rental properties
Gumtree said that rents were down by 3.6% in London, 2.9% in Manchester and Belfast, and 2.7% in Brighton.
It blamed the falls on the rental market being flooded with properties, as people opted to rent out their home hoping that house prices would recover.
Gumtree has seen a 19% rise in the number of people advertising properties to rent on its website during the past three months. See the Which? guide to searching for rental property online if you’re looking for somewhere to rent now.
Landlords can’t sell home
A Gumtree survey found 23% of landlords said they were only renting out their home because they had not been able to sell it for what they thought it was worth.
But many are unaware of their legal obligations, with 46% failing to get a gas safety certificate and only 47% installing a smoke alarm.
Half of landlords didn’t draw up a legal contract with their tenants, only 46% requested references, and just 42% took out home insurance.
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© Press Association 2009