Rise in the supply of rental homes

A recent report has shown that there has been a rise in the supply of rental properties in the UK, and this has been partly fuelled by a rising number of consumers decide to rent out their homes because they are unable to sell them due to the slump in the housing market.

The number of properties being sold has fallen enormously over recent months, with falling house prices, tighter lending conditions, and lack of affordability all impacting on property sales. Many homeowners have therefore resorted to renting their properties out in light of the difficulties faced when it comes to selling the properties.

Officials from the Royal Institute of Chartered Surveyors have said that the current housing slump and chaos in the mortgage markets is resulting in a rise in the number of landlords as well as in the number of tenants. New instructions from landlords rose at the fastest level on record in July according to RICS officials.

An official from RICS said: “Frustrated vendors have been placing their property in the market to let as they have been unable to agree sales due to a lack of demand in the housing market. Many would-be buyers have been forced to rent as the route to mortgage finance has been blocked.”