21/11/2008 - Rental properties flooding market
Some buy-to-let landlords are facing a fall in rental income after figures showed that the lettings market was being flooded with property that had failed to sell.
During the third quarter of the year, many would-be sellers decided to rent out their homes after failing to secure a sale, meaning the supply of rented property outstripped demand for the second quarter running. The Royal Institution of Chartered Surveyors (RICS), which compiled the figures, said that this helped to drive up the number of surveyors reporting a rise in listings to a new high for both flats and houses.
RICS spokesperson James Scott-Lee said: "The lettings sector has witnessed a boom in 2008 as sales in the housing market continued to slow. Many have been able to take advantage of rising rents to secure good returns.
"However, the market place has become more and more competitive as many vendors have been forced to become amateur landlords, creating an inevitable downward pressure on rents where supply has matched demand."
But he added: "With national average house prices set to weaken in 2009, yields may increase for those investors who can provide the right product for the right market place."
Copyright © Press Association 2008
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