|'Rents Falling Faster Than House Prices '|
Figures reveal disappointing news for "reluctant landlords"
Rents of certain properties are falling at a faster rate than house prices, according to new figures from the estate agent Douglas & Gordon. This is disappointing news for "reluctant landlords", who are only renting out their property because they are unable to sell.
Larger properties have experienced the biggest drops in rent: four-bedroom house rental values have fallen by up to 20 per cent in the past quarter, outstripping the 8.9 per cent drop in house prices recorded by Douglas & Gordon. Meanwhile one-bedroom property rental values have fallen by between five and six per cent. Overall the average fall has been 10.6 per cent in the past quarter and 11.2 per cent this year.
"Market activity is skewed towards the lower end of the market," Doulgas & Gordon’s Michael Hodgson told The Telegraph. "This means that bigger, more expensive properties are renting out for less."
At the end of November, the company had 385 properties available to let, compared to 200 at the same time last year.
"The market for long-term investors has been messed up by reluctant landlords," he says. "If you want to move house, I think you should get on and do it now."
December 23, 2008