28/05/2009 - Rental market 'is stabilising'
Research shows the rental market may have begun to stabilise with the average rent in May remaining unchanged for the first time in nine months.
According to website FindaProperty.com, the average rent paid in May was £819, unchanged from April and the first time since August 2008 that the cost has not fallen.
The rate at which rent prices increased also eased suggesting the bottom of the market may have been reached.
The total number of properties available to rent only increased by 2.7% compared with the 14.5% jump in availability seen in May last year.
People have been forced to rent out their homes since the start of the credit crunch as the uncertain market has made them difficult to sell.
The rise in rental properties available has led to a 6% fall in average rents in the past year as competition among tenants increased.
Andrew Smith, head of research at FindaProperty.com, said: "A slowing in the increase of supply and signs that asking rents are beginning to stabilise indicate that we may be close to the bottom of the market."
Copyright © Press Association 2009
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