UK property investors become landlords in droves

photo credit: DeepBluC

A record number of UK property owners are entering the rental market and becoming landlords, according to new figures.

Some property investment professionals began renting property as the market stalled and brought down the value of their assets.

The Royal Institution of Chartered Surveyors (RICS) said 68 per cent more of its members were reporting a rise as opposed to a fall in the number of new instructions to let houses.

Fifty per cent are also recording a rise as opposed to a fall in the number of flat owners looking to rent out their properties.

RICS spokesman James Scott-Lee said:

“The lettings sector has witnessed a boom in 2008 as sales in the housing market continued to slow.

“Many have been able to take advantage of rising rents to secure good returns.”

However RICS added the rental market has become more competitive as a result of the increase in stock.

As a result there is an “inevitable downward pressure” on rents where supply has grown to match demand.

However, Mr Scott-Lee said yields may increase for landlords providing they had the right product for the right market place.

London and the Southeast are the areas where rents appear to be falling in the greatest numbers, RICS figures show.

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