Rent could drop as buy-to-let grows |
18 2008 |
| Both interest rates and house prices are dropping at present, creating what should be a perfect buying situation for buy-to-let landlords hoping to expand their portfolios. Those who can provide the deposit to obtain new mortgages in the current economic climate may certainly be tempted to expand their portfolios but a rush of buy-to-let purchases may cause a drop in rents as supply increases. Brian Adair, executive chairman of Ryden Lettings, explained to the Sunday Herald that demand for rental properties is still high, with would-be first-time buyers making up a great deal of the new renters. "There is strong tenant demand for properties between £400 and £700 a month, mainly from would-be first-time buyers who cannot get a mortgage," he told the newspaper. There are many benefits to renting in the current market, and the high deposit required in order to purchase a home at present is just one of the reasons letting companies such as Your Move have reported a rise in tenant demand in 2008.  |
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