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| Supply of rental properties rises | Supply of rental properties rises |
| (about 10 hours later) | |
| The number of properties up for rent has jumped as people who cannot sell their homes decide to let them instead. | The number of properties up for rent has jumped as people who cannot sell their homes decide to let them instead. |
| The Royal Institution of Chartered Surveyors (Rics) says the slump in house sales is forcing many more people to become either landlords or tenants. | The Royal Institution of Chartered Surveyors (Rics) says the slump in house sales is forcing many more people to become either landlords or tenants. |
| In July, Rics members saw new instructions from landlords rise at their fastest rate on record. | In July, Rics members saw new instructions from landlords rise at their fastest rate on record. |
| But potential tenants are outweighing would-be landlords, and helping to push up rents in many areas of the UK. | But potential tenants are outweighing would-be landlords, and helping to push up rents in many areas of the UK. |
| The international credit crunch and the subsequent drying up of finance for new mortgages has produced the sharpest housing market slump seen since World War II. | The international credit crunch and the subsequent drying up of finance for new mortgages has produced the sharpest housing market slump seen since World War II. |
| The number of house sales has already fallen by 50% in the past year and with mortgage approvals already down by 70% it looks likely that sales will fall even further in the coming months. | The number of house sales has already fallen by 50% in the past year and with mortgage approvals already down by 70% it looks likely that sales will fall even further in the coming months. |
| "Frustrated vendors have been placing their property in the market to let as they have been unable to agree sales due to a lack of demand in the housing market," said Rics. | "Frustrated vendors have been placing their property in the market to let as they have been unable to agree sales due to a lack of demand in the housing market," said Rics. |
| "Many would-be buyers have been forced to rent as the route to mortgage finance has been blocked," it added. | "Many would-be buyers have been forced to rent as the route to mortgage finance has been blocked," it added. |
| More lettings | More lettings |
| According to the Rics survey of residential lettings, 43% more of its members reported a rise in landlord instructions than saw a fall during the three months to July. | According to the Rics survey of residential lettings, 43% more of its members reported a rise in landlord instructions than saw a fall during the three months to July. |
| Ever increasing supply could have an impact on rental growth Royal Institution of Chartered Surveyors Save tax when moving and letting | Ever increasing supply could have an impact on rental growth Royal Institution of Chartered Surveyors Save tax when moving and letting |
| That was up from a positive balance of 30% in the previous quarter. | That was up from a positive balance of 30% in the previous quarter. |
| Actual lettings also went up strongly, with 37% more surveyors reporting a rise than a fall in lettings to tenants. | Actual lettings also went up strongly, with 37% more surveyors reporting a rise than a fall in lettings to tenants. |
| Meanwhile 43% more surveyors reported a rise than a fall in the local demand for rented houses, compared with a balance of 34% in the demand for flats. | Meanwhile 43% more surveyors reported a rise than a fall in the local demand for rented houses, compared with a balance of 34% in the demand for flats. |
| Many potential buyers, finding it hard to get a mortgage, are now renting rather than buying new homes, with family houses especially in demand. | Many potential buyers, finding it hard to get a mortgage, are now renting rather than buying new homes, with family houses especially in demand. |
| The knock-on effect has been that rents have continued to rise, even though house prices are falling. | The knock-on effect has been that rents have continued to rise, even though house prices are falling. |
| The Rics findings contradict those of some other recent rental surveys. | The Rics findings contradict those of some other recent rental surveys. |
| These have suggested that in fact new properties coming onto the rental market have outnumbered the increase in potential tenants. | These have suggested that in fact new properties coming onto the rental market have outnumbered the increase in potential tenants. |
| The property firm Knight Frank has predicted that rents in central London may fall by up to 5% this year because of an oversupply of "forced landlords". | The property firm Knight Frank has predicted that rents in central London may fall by up to 5% this year because of an oversupply of "forced landlords". |
| Warning | Warning |
| Landlords are now more inclined to keep hold of their rental properties, the Rics survey found, with only 2.1% opting to sell when their tenants' leases expired, the lowest proportion on record. | Landlords are now more inclined to keep hold of their rental properties, the Rics survey found, with only 2.1% opting to sell when their tenants' leases expired, the lowest proportion on record. |
| "Established investors have been reaping the benefits of the housing downturn for sometime and will continue to do so in the short term," said Rics. | "Established investors have been reaping the benefits of the housing downturn for sometime and will continue to do so in the short term," said Rics. |
| "However, ever increasing supply could have an impact on rental growth as tenant options increase," it pointed out. | "However, ever increasing supply could have an impact on rental growth as tenant options increase," it pointed out. |
| Demand from prospective tenants appears to be strongest in the North of England, while new instructions from landlords are strongest in the Midlands and Wales, | Demand from prospective tenants appears to be strongest in the North of England, while new instructions from landlords are strongest in the Midlands and Wales, |
| "Demand for rented accommodation is strong," said Malcolm Parker of Joplings estate agents in Thirsk. | "Demand for rented accommodation is strong," said Malcolm Parker of Joplings estate agents in Thirsk. |
| "A major factor in recent weeks is that many unsold houses are being withdrawn from sale and offered for rental instead," he added. | "A major factor in recent weeks is that many unsold houses are being withdrawn from sale and offered for rental instead," he added. |
| However the picture is not uniform. | However the picture is not uniform. |
| "There is an oversupply of rental property in the market due to property owners, unable to sell their properties, attempting to let them," said Shoulers estate agents in Melton Mowbray. | "There is an oversupply of rental property in the market due to property owners, unable to sell their properties, attempting to let them," said Shoulers estate agents in Melton Mowbray. |
| "We see this trend continuing," they warned. | "We see this trend continuing," they warned. |
| Have you been affected by the issues covered in this story? Has the slump in housing sales forced you to become a landlord or tenant? Do you work in the property business? Send us your comments using the form below. | |