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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 It is now over 6 months old so the content may be out of date.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.

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