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Rents could recover

Rents could recover

Category: Mortgages

Updated: 29/04/2009
First Published: 29/04/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Rents at the top end of the market could begin to creep up again as a result of the sales market for family homes starting to pick up.

With the number of frustrated sellers renting out their properties retracting, the drop in supply is expected to see rents rise, albeit at a very slow pace, according to

Further down the market, as first time buyers still struggle with restrictive mortgage criteria, rental demand for smaller homes remains strong.

The increase in people going into further education or becoming self employed is also likely to boost the sector.

However, supply is also high as homeowners on the bottom rung continue to rent out their unsellable properties, although this trend is showing signs of reversal.

"Yields are looking attractive and with the housing market nearing the bottom many landlords are looking at expanding their portfolios," said Keshav Thukaram, the property website's managing director.

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