After nearly 2 years of static or falling rents it appears that ‘green shoots’ of recovery are starting to appear in the rental market.
Over the last 18 months we have seen a new phenomenon, that of ‘accidental landlords’. Many people needing to move home but unable to sell their existing property have simply opted to rent it out until market conditions pick up. This has significantly increased supply in the rental sector and resulted in struggling rental values as landlords have undercut each other in an attempt to attract a tenant.
However, with recent improvements in the sales sector it appears that this situation may be starting to rectify itself.
New figures from property website findaproperty.com show a rise in rental values for the first time in nearly 2 years. Over recent weeks, a number of market commentators have been predicting a sustained rise in rental values and the figures from findaproperty.com reinforce this view.
With the growing belief that we have now weathered the worst of the storm the outlook for the rental sector is looking brighter than it has for quite a long while. As property sales strengthen and rental competition reduces, landlords should once again be in a position where they can not only increase the monthly rental but more importantly achieve the asking figure.
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