Landlords warned to be realistic on rents
Tuesday, 7 February 2012 12:33 PM
Landlords will have to get used to the fact that the London rental market has stabilised and adjust their rents accordingly, according to two leading lettings agents.
Rents have hit an all-time high in many London boroughs and commuter towns and the buy-to-let market has grown substantially in the last two years.
But now Caroline Kavanagh, managing director of Townends Lettings and Management, says the rate at which rents have risen is unsustainable for tenants. While demand remains high, many tenants are spending two-thirds of their income on rent.
She said: "For a long time, landlords have been in the driving seat but the start of the new year seems to have brought about a change in tenant attitude, one that is no longer willing to just accept price rises, but that is prepared to look for an alternative in order to take back an element of control."
Backing for that view outside the capital comes in the latest index from lettings specialist Belvoir. It says that only London and the North East had rents in 2011 that were significantly higher than in 2008. Yorkshire, the South West and West Midlands had rents that were slightly higher and everywhere else still has rents that are lower than in 2008.
Belvoir managing director Dorian Gonsalves said: "The UK rental market is strong, but landlords should be realistic about the rents that can achieved in their area and talk to specialists who understand the local market, as buying in the wrong area can be very costly."
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