Credit crunch 'yet to be felt in rental market'

26 2008
Even though the global credit crunch is currently having a serious impact on the UK property market, it is too early to tell how it will affect the rental sector, it has been claimed.

Recent research carried out by Accommodation for Students found that student rent has risen by as much as 18 per cent over the past four years alone, with London, Cambridge and Middlesex among the most expensive places in the country to be a tenant while studying full-time.

However, David Salusbury, chairman of mydeposits.co.uk, has explained that rents are currently not overpriced, but in fact could be the very opposite.

"Rents are not historically high; in fact, if anything, one could make a case for them being low because rental yields – expressed as a percentage of rent received in a year as a proportion of the capital value of a property – are actually quite low at the moment," he explained.

He added, however, that "there are signs that rental yields are in fact rising which is probably bringing them closer to the historical norm", reaffirming the long-standing advice that both student and professional tenants need to shop around and compare rates to get the best rental deal. ADNFCR-1219-ID-18748897-ADNFCR

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