Unsold homes results in lower rents

Recent report and figures have shown that the number of unsold homes in the UK is resulting in a reduction in the amount of rent being charged for rental properties. With the property slump having resulted in record lows when it comes to property sales the cost of renting a property in many areas has fallen, as the number of properties coming up for rent soars compared to consumer demand.

Many homeowners that have been unable to sell their homes because of the slump in the property market have decided instead to put their homes up for rent and try and earn some money from their property in that way, and this has resulted in a saturation of rental properties on the market. This, in turn, has resulted in lower rental prices for the properties, with consumers having far more choice than they had previously.

An official from the Royal Institute of Chartered Surveyors confirmed that a rising number of people have been putting their properties up for sale over recent months because they cannot sell them. He said: “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.”

Reports show that over half of members of the Royal Institute of Chartered Surveyors have seen rental property prices fall as a result of the increase in rental properties on the market, enabling consumers to rent property out at a far cheaper monthly rental price than they were able to get previously.