Rental market ‘appeals to house sellers’

More people are turning to the buy-to-let market if they struggle to sell their property, according to the Royal Institution of Chartered Surveyors (Rics).

Statistics from the organisation show a rise in new landlord instructions for the first three months of 2008 and it is believed this shows that sellers are becoming landlords in the current market conditions.

Rising rental yields and an inability among buyers to secure mortgages have been suggested as contributing factors.

James Scott-Lee, Rics spokesperson, said the letting market is gaining from the loss of the sales sector.

“With rental expectations high, landlords will continue to enjoy this increasingly lucrative market,” he predicted.

Rics’ figures also found that more landlords are holding onto their properties after their tenants’ leases expire.

John Heron, managing director of Paragon Mortgages, recently said that tenants seem to remain in private rented accommodation for longer in the current market conditions.

He predicted high levels of demand for rental properties in the near future, unless something is done to improve the situation for first-time buyers.

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