UK Rents Stabilise
There is some reassuring news for landlords reports Andrew Oulsnam of Robert Oulsnam & Company.
The latest surveys indicate that average monthly rent stabilised in May remaining at April's figure of £765.
According to Andrew Oulsnam, excess supply due to reluctant landlords has helped push rents down almost 10 per cent in the past year but the balance of power is now shifting, with demand for rented accommodation currently high.
He points out that this is peak time for graduates with guaranteed jobs to start looking for accommodation and a favourite time of year for home movers to relocate.
However, the average yield fell from 5.1 per cent to five per cent in May, as house prices nudged upwards slightly.
Tenants saw average Income fall one per cent from April to May, impacting on affordability, and the proportion of tenants classified as unemployed rose in May to 7.8 per cent.
Despite the risks inherent in the economic downturn, Andrew Oulsnam sees the long-term outlook for the private rented sector as strong and recommends that landlords looking to expand their portfolios act now but ensure they are protected against short-term risk.