Value of rental properties rises

The impervious sales market has seen an influx of family homes and higher value properties being put up for rent.

The lettings market was typically seen to be the territory of small homes and flats. However, with first time buyers being priced out of the sales market, many family homes and up-market properties are being added to the books of letting agents.

Research by the Association of Residential Lettings Agents (ARLA) noted growth of 11.6 per cent in the value of rental properties during the first quarter of 2011 -  meaning the average value of a home for let now stands at £447,900.

The growth was lead by London and the South East, which saw rises of 14.8 per cent and 16.2 per cent respectively.

ARLA spokesperson Ian Potter explained the findings to propertymentor.co.uk, saying, "This increase in the overall average capital value of rental properties has been driven by different types of home being offered to let.''

"Today's housing climate and uncertainty around jobs and income means people are choosing to let rather than sell their home, causing an increase in the number of family-sized homes available to rent."

Potter told rman.co.uk that the new figures could mean a greater flexibility for those looking to rent properties in the future. "While these changes to not necessarily mean individual properties are worth more money," he said, "they do indicate that there is increasing flexibility in terms of the types of property available."

Posted 27-04-2011
Author: David Howells