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Growth of rental rates slows under pressure from tenants

Friday, March 09, 2012

Rental prices increased at a slower rate in the early part of the year as some tenants began to resist the sharp rises in rent levels seen in recent quarters, according to the latest RICS Residential Lettings Survey.

Rental prices continued to increase across the UK, albeit at the slowest pace in two years, in the three months to January with a net balance of +13% of surveyors reporting increases in past rental values (from +21% in the previous quarter).

With values having risen strongly for some time, it seems that the market may be beginning to level out with prospective tenants less willing to pay increasing rents.

Demand for rented accommodation remained relatively strong with 19% more respondents reporting rises rather than falls in interest from prospective tenants. Demand has seen strong growth in recent quarters; however, with an increasing number of first-time buyers looking to beat the expiry of the stamp duty holiday in March, it seems some are now turning to the sales market, slowing the pace of rental growth.

Source: PropertyTalkLive.co.uk

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