30/04/2009 - House rentals show revival signs
Although the oversupply of flats is driving down rents and hampering the property market, the letting market for houses is beginning to show signs of recovery, according to new research.
FindaProperty.com said that the number of houses available to let fell for the second month in a row during April, dropping by 1.5%, while rents for larger properties rose for the second consecutive month.
But the supply of rental flats rose for the sixth month in a row, increasing by 2.8% during April to stand 132% higher than a year ago.
Andrew Smith, head of research at FindaProperty.com, said: "The UK has become a tale of two very different markets.
"House rentals are seeing the start of a recovery with declining supply rates and price rises for the largest family homes.
"In contrast, the flats market has seen a much deeper downturn, with rental prices falling for 13 consecutive months and supply levels continuing to increase."
The group said the reduction in the supply of houses available to rent was likely to be due to people who had previously listed their homes for both rent or sale taking them off the market completely or returning to the sales market with a more realistic asking price.
Copyright © Press Association 2009
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