March 17, 2009

The state of the rental market

Usually when the price of property falls, the cost of renting increases and visa versa, but we find ourselves in an exceptional marketplace these days and due to the amount of property on the market at the moment, rental prices are also in the decline.

London is a good place to look as the market is large and the properties are varied in size and price, however overall there has been a decline of almost twelve per cent, one average that works out at over two hundred and twenty pounds off the rental cost.

Yet demand for rented accommodation is up by almost twenty per cent, this should mean that prices go up according to demand, this has not happened because of the supply of properties to the market, which are up by almost fifty per cent hence the falling prices.

Source [Property Hawk]