In the past year, huge numbers of accidental landlords have flooded the market, causing rents to go down, says Your Move, but the balance between supply and demand is now easing as more tenants sign up to new leases.
David Newnes, managing director of Your Move estate agents, says: “We’ve endured a painful adjustment in the property market – but I think we could be seeing some light at the end of the tunnel. Lettings are the silver lining of the past year’s market. Tenant demand in February was up strongly on 2008 – by 46%.
“More importantly, the flood of new stock coming onto the lettings market as some disgruntled sellers became accidental landlords has ebbed, taking the pressure off rents.”
Your Move saw interest in buying property spike in February and new buyer registrations were at their highest since Easter last year.
Newnes adds: “The banks have still got their hands tightly around the neck of mortgage finance. But if you’re lucky enough to have a nest egg, Warren Buffett comes to mind, “Be fearful when others are greedy. Be greedy when others are fearful.”
“If landlords can get finance, low interest rates, low house prices and a strong rental market makes now a superb opportunity to invest.”