Rental investment remains strong in north-east

02 2008
Investment in rental properties has remained sustained in the north-east despite the decline in property values, it has been reported.

The Royal Institution of Chartered Surveyors (Rics) has published a report suggesting that both supply and demand of rental properties in the north-east has risen recently, as tenants become attracted to the financial security of renting their home.

Richard Sayer, north-east spokesman for Rics, said: "The buoyancy of the rental market comes as no real surprise given the decline in new housing supply and tenants' inability to get mortgage funding."

Britain's second-largest lettings agent, Your Move, recently reported that it experienced a rise in demand for rental property of 50 per cent in the past year, adding further evidence to the view that tenants are becoming increasingly reliant on the rental market.

Many young professionals are becoming attracted to the rental market at present as a result of the financial security it offers in comparison to the decision to buy their own property.

The ability to cancel contracts and move at short notice is also appealing to young professionals who may experience regular career changes.ADNFCR-1219-ID-18906560-ADNFCR

Related Articles
More trouble in the housing market
The pitfalls of owning a property in today's market have been highlighted...

Bank could further reduce rates
The Bank of England could reduce base rates yet again this week, perhaps...

House prices reliant on banks' confidence
With many analysts making predictions for the housing market in 2009 there...

Isle of Man bucking house price falls
The Isle of Man saw house prices rise four per cent throughout 2008, one...

Lib Dem Cable talks of record house price slump
Liberal Democrat treasury spokesman Vince Cable has attributed a mix of...