Estate agents are rejecting landlords looking to rent out properties or advising them to lower their prices as a rush of new instructions, particularly in London, has far outstripped demand from tenants.
Homeowners unable to sell their properties are increasingly offering them for rent to cover mortgage costs. Although rents have been rising fast, agents said some of the prices landlords expected, or needed to meet their monthly outgoings, were too ambitious.
Savills has stopped accepting new rental stock at its Canary Wharf office and said it was being “very choosy” about what it took on in other areas. Meanwhile, Knight Frank said up to 40 per cent of its rental properties across central London were over-priced by 5-10 per cent, as landlords sought unrealistic rents.
But not all parts of the country have seen such strong growth in rents. Figures from Hometrack show that in places such as Nottingham and Manchester, where there has been an oversupply of new flats, rental growth has been much slower. In Liverpool and Newcastle rents had fallen since the start of 2007.
Higher rents are putting first-time buyers at risk of being priced out of both the rental and sales markets.
Agents said many tenants coming to the end of agreements faced large increases, with some forced to move into cheaper properties. Meanwhile, the cost of buying is still high. Any benefits first-time buyers would gain from the softening in the market have largely been offset by higher mortgage costs and tighter lending practices. >>
Landlords told to lower unrealistic rents
By Sharlene Goff and Daniel Thomas
Published: June 28 2008 03:00 | Last updated: June 28 2008 03:00
ft.com/cms/s/0/4958d122-44ab … fd2ac.html
And the spin goes on - from the above instead of “Higher rents are putting first-time buyers at risk of being priced out of both the rental and sales markets”, how about the “Expecting higher rents is putting landlords at risk of pricing themselves out of the rental and sales markets.”?