Those who are renting while waiting for property prices to fall should consider buying now, according to the Royal Institution of Chartered Surveyors’ (RICS). Demand for rental property is at its strongest for two years, according to RICS’ latest residential lettings survey, keeping rents steady across most of the country.
Jeremy Leaf, housing spokesman at RICS, said: ‘Those who have come out of property and are renting may be seeing their rents rise and are faced with the question of waiting for property prices to fall or buy now. It is probably a good time to think of going back into the market. The issue bears careful analysis.’
A net 1% of surveyors have reported a drop in rents, over the past three months, compared with 9% in the previous quarter. Rents rose in most regions across the country, especially the North, with the exception of London and the South East. However, the highest rents were still to be found in London where the average rent per calendar month was £1,619, compared with an average of £714 across Great Britain.
Residential let properties are currently offering a return of about 5% to investors which, after repair and maintenance costs and vacancies, gives a net yield of 2%-2.5%.