Partner Article

North East rental prices on the rise

Demand for rental property in the North East once again outpaced demand in the last quarter as increasing numbers of would-be buyers struggle to find mortgage finance.

According to RICS, over a fifth of surveyors reported a rise in demand for rental property, with social lettings making up 20 percent of all new lets, the highest number in Great Britain.

The number of landlord instructions on the market rose slightly, though remained at low levels. However, increasing numbers of landlords are choosing to put their properties on the sales market, with the percentage choosing to sell rising from 0.9 percent to 4.4 percent in Q2.

Rents also rose, with 29 percent of surveyors reporting an increase in prices, a trend which expected to continue over the next 3 months.

Jennifer Welch, Operations Director, RICS North, said: “The combination of strong tenant demand and a limited stock of good quality properties on offer is pushing rents ever higher across much of the country.

“Moreover, with mortgage finance for first time buyers likely to remain in short supply for some time to come, this imbalance is set to persist.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .