Lettings market going strong

Wednesday, 1 November 2006 12:00 AM

The lettings market has been going strong from July to September of this year, with the time taken to rent a property dropping and more landlords entering the market.

The quarterly figures from the National Association of Estate Agents' (NAEA) newly launched lettings survey show the number of first-time buyers are dropping and rents are on the up.

The NAEA said growth in the rental sector is being fuelled by increasing property prices acting as a barrier for first-time buyers and demand from immigrants looking to rent.

"The lettings market has seen many significant changes in the last twelve months. The introduction of licensing of houses of multiple occupation, tenancy deposit schemes and the housing health and safety rating system, have and will have significant impacts upon the market," said Jan Bartlett, lettings expert at the NAEA.

"On the whole the sector is performing well with many agents reporting significant improvements in business. The mass influx of Eastern European immigrants has boosted the market and of course, the ever increasing average age of the first-time buyer has assisted in an increase of buy-to-let investments."

The time taken to let properties has been steadily decreasing over the last nine months, with the average of 13.2 days per letting recorded in the first quarter dropping all the way down to 12.2 days by the third quarter of this year.

And between July and September 2006 tenants have been taking up rental properties faster and faster, with an average of 11.6 days recorded for September, compared to 12.6 days in July and August per letting.

Estate agents have also reported that rents have been growing an average of 1.45 per cent every month in the third quarter of this year, two-thirds greater than the rate of 0.87 per cent for the same time last year.

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