9 Sep

Rent levels supported by sales and restricted availability

Rent levels supported by sales and restricted availability

Sales and a predicted fall in the number of available properties will support rent levels in the coming months, according to one property expert.

Mark Butterworth, a director at the Residential Landlords Association, which offers advice to landlords, said that a few sales - as unwilling landlords sell up - and an expected net lowering in the number of properties available will provide support for rent levels.

His comments follow the publication of a report by the Royal Institution of Chartered Surveyors, which revealed that the net balance of surveyors recording a rise in the level of new instructions increased by six per cent between May and July 2009.

Mr Butterworth also claimed that sales and less availability will not guard against increasing arrears as unemployment rises.

"Now would be a good time for the Treasury to relax pension rules to allow Sipps [self-invested personal pensions] to hold a proportion of residential property," he stated.

This news comes after moneysupermarket.com recently reported that the number of enquiries for buy-to-let mortgages increased by nearly 50 per cent in the past year, while the number of available products decreased by over 70 per cent.

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