Rentals decline - Mortgages - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Rentals decline

Rentals decline

Category: Mortgages

Updated: 05/05/2009
First Published: 05/05/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Would be homebuyers unable to secure property have been given a boost with news that the number of rental properties on the market is increasing.

This is likely to lead to a fall in prices, while landlords are offering more incentives than ever before in a bid to fill property, according to the Royal Institution of Chartered Surveyors' (RICS) Commercial Property Survey.

Findings show that available floor space in the rental sector has increased at a record rate in recent months. Sixty five per cent more chartered surveyors reported a rise rather than a fall in this respect, up 57 per cent from the last quarter of 2008.

Furthermore, 80 per cent of surveyors said they expect a fall, rather than a rise, in rents. The value of inducements also rose at the fastest pace in the survey's history as landlords offered substantial incentives to potential tenants.

While new occupier enquiries remained historically low, the commercial property market offered some hope, with just 38 per cent of surveyors reporting a fall, rather than a rise, in enquirers – the least negative results in12 months.

RIC's senior economist, Oliver Gilmartin, said the Government had failed to address the issue of empty properties sufficiently in the Budget.

"This is encouraging the demolition of perfectly good buildings, discouraging speculative development and could result in more far reaching problems when the economy starts to pick up again," he added.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.