Landlords could receive an income boost in the New Year as new research predicts residential rents are likely to increase in the New Year.
The latest research from the Royal Institute of Chartered Surveyors (RICS) published on 2nd December, 2009 found that surveyors expect to see rent rises in the New Year as the number of rental properties coming onto the market falls for the first time since January 2008.
Nationwide data found that house prices rose by 0.5% in November, 2009, the same rate as in October. Year-on-year house price inflation increased from 2.0% to 2.7%.
Read More: Expert Predictions on Future Property Prices.
The recent pick up in the housing market seems to have led to a drop off in the number of rental properties, particularly houses, being made available and as a result surveyor optimism has increased for the first time since July 2008. 22 percent more surveyors expect rents to rise rather than fall in the next three months.
The drop off in supply is the main driver for the more positive sentiment, with new instructions reaching their lowest levels since the survey began in 1998.
Martin Gahbauer, Nationwide’s Chief Economist, believes that house prices are now at similar levels to what they were in early 2006.
“The 3 month on 3 month rate of change - generally a smoother indicator of the near term trend dropped to 2.8% from 3.5% in October and 3.8% in September,” he said.
“This suggests that house prices are now rising at a more moderate pace than in the spring and summer months, when they experienced a very strong bounce from the early 2009 lows.”
Gahbauer stressed that the outlook for the housing market remains crucially dependent on labour market conditions.
Better Money Advice - Bringing you the best money saving deals on 2-4-1 restaurant vouchers, plus the best money advice. Best Loan Deals, Best Insurance Deals, Credit Card Deals & more Money Saving Deals Online- Bettermoneyadvice.co.uk.
Not what you are looking for? Search Better Money Advice for the Latest Money Saving Deals & News
Loading