Decrease in rental market stock levels 'not surprising'

Date:Wednesday 4th November 2009
Author: Max Freedman

The decrease in the amount of rental stock available on the property market is unsurprising, said one industry expert.

Lucian Cook, director of residential research at Savills, commented after FindaProperty.com reported a 10.2 decrease in the number of properties of the market for rent.

Mr Cook said he was not surprised by the findings as more landlords opt to sell their properties to take advantage of a similar decline in numbers on the sales market.

Mr Cook said they may feel there is "a good chance of selling in the market, but we might be in a sweet spot in the market where you can achieve a decent price because of the lack of stock".

He added that in the long term, the rental market will expand again as people find themselves turning to this option due to high deposits and the difficulties faced in securing mortgages, particularly for first-time buyers.

The average monthly cost of rents increased to £830 last month, an increase of 0.1 per cent from the previous month, but still there is a decline of 3.8 on a year ago, FindaProperty.com also reported.