Rental values product of supply and demand
Current property rental prices are "as much a function of supply and demand as anything else", the chairman of mydeposits.co.uk has claimed.
David Salusbury, of the government authorised tenancy protection scheme, admitted that the credit crunch was having an impact on the price of property, but suggested that letting rates were a different matter.
In August, Rentright's residential rental price index disclosed that the average monthly rent in the UK stood at £588, compared to £636 in June 2008 and £726 from this time last year.
A recent Royal Institution of Chartered Surveyors survey revealed that new instructions to let houses and flats increased at its fastest pace since the polls inception.
"I wouldn't say that rents are particularly high at the moment," explained Mr Salusbury.
"There are signs that rental yields are in fact rising which is probably bringing them closer to the historical norm," he added.
Last year, Mydeposits.co.uk safeguarded 200,000 individual tenants' deposits valued at £177 million.
UK Property News posted on 22/08/2008 14:42:20
|
