Tuesday 11th September 2007
The buy-to-let property market is continuing to boom, despite higher interest rates, according to the Royal Institution of Chartered Surveyors (Rics).
High property prices, which are forcing potential buyers to rent for longer, as well as a high level of immigration and a short-fall in new housing are all leading to an increased need for rented property, and as result, rents are rising at their fastest recorded rate.
The Association of Rental Letting Agents (Arla) has reported record rental prices, with the average weekly rent for a flat being £525 a week in London, £215 a week in the South East and £150 in the rest of the country.
Rics spokesman, Jeremy Leaf, said: "Current economic uncertainty has created an ideal platform for buy-to-let investors to cash in on rising rental levels.
"Many would-be buyers have decided to wait and see how the interest rate cycle will affect the market."
He added: "Rising rents are offering some compensation for landlords that are experiencing higher borrowing costs although buy to let investment will struggle for funding in 2008 as lenders become more discriminating, especially for 'sub prime' properties."
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Property
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