Higher rent return on the way
Posted
@ Jan 1st 2007 1:52pm
- By GCPN Property Network
Letting agents are already reporting increased demand for rental accommodation on the back of the recent two half-percentage-point interest rate increases, which could see the market revert back to the traditional 10% year rental escalations sooner rather than later.
Few buy-to-let investors have been able to pass the standard 10% rental increases on to tenants when leases came up for renewal, as an oversupply of rental properties kept a tight lid on rental growth.
However, the fortunes of buy-to-let investors are likely to change for the better over the next few months as affordability issues force potential homeowners to put buying plans on hold
.