Feb. 18 (Bloomberg) -- A gauge of U.K. residential rents fell for a
second month in January as more property investors entered the
buy-to-let market, pushing up supply, LSL Property Services Plc said.
The average monthly rent for a home in England and Wales fell 0.3
percent to 682 pounds ($1,102) from December, the lowest average since
July, the Newcastle, England-based company said in an e-mailed
statement today. From a year earlier, it was up 4 percent.
While rents rose last year as prospective homebuyers were put off
purchases as banks curbed mortgages and the government’s budget
squeeze undermined confidence, lending to landlords is now increasing,
bolstering the number of properties for rent, LSL said. The number of
buy-to-let loans rose 6 percent in the fourth quarter, according to
the Council of Mortgage Lenders.
“The recent loosening in the buy-to-let mortgage market has boosted
the supply of rental homes on the market, a crucial factor in the
temporary drop in rents,” David Newnes, estate agency managing
director of LSL, said in the statement. “There are signs that this
trend is continuing into 2011.”
The decline in rents in December and January may also be partly caused
by landlords cutting asking prices during the slower holiday season to
avoid properties being empty, Newnes said.
buy-to-let market, pushing up supply, LSL Property Services Plc said.
The average monthly rent for a home in England and Wales fell 0.3
percent to 682 pounds ($1,102) from December, the lowest average since
July, the Newcastle, England-based company said in an e-mailed
statement today. From a year earlier, it was up 4 percent.
While rents rose last year as prospective homebuyers were put off
purchases as banks curbed mortgages and the government’s budget
squeeze undermined confidence, lending to landlords is now increasing,
bolstering the number of properties for rent, LSL said. The number of
buy-to-let loans rose 6 percent in the fourth quarter, according to
the Council of Mortgage Lenders.
“The recent loosening in the buy-to-let mortgage market has boosted
the supply of rental homes on the market, a crucial factor in the
temporary drop in rents,” David Newnes, estate agency managing
director of LSL, said in the statement. “There are signs that this
trend is continuing into 2011.”
The decline in rents in December and January may also be partly caused
by landlords cutting asking prices during the slower holiday season to
avoid properties being empty, Newnes said.
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