Sellers Turn Landlord
Unsold homes are inundating the rental market, driving down rents at the fastest rate on record.
The Royal Institution of Chartered Surveyors (Rics) said new instructions to sell flats and houses had been at record levels in the past few months.
However, Rics said many people who cannot sell their homes have decided to let their properties, and this increase in supply has pushed rents down.
The proportion of surveyors reporting lower rents was its highest since 2003.
The past year has seen a dramatic turnaround in the UK property market because of the international banking crisis and the credit crunch.
The latest quarterly Rics survey - for August, September and October - shows that the difficulties people have had in buying and selling homes have spilled over decisively into the rental market.
With the supply of mortgages, sales and house prices all falling fast, many would-be vendors have decided to let their homes instead of selling them.
"Frustrated vendors are placing their property on the market to let as they have been unable to agree sales due to a lack of demand in the housing market," said Rics.
The turnaround for potential landlords and tenants has been swift and the number of homes available to rent has boomed.
The region most affected by the sudden change in the rental market has been London and the South East.
That part of the country is heavily dependent on the financial services industry and has seen a swift rise in unemployment.
www.new.bbc.co.uk
(Tuesday, November 18, 2008)