26 Aug

Rental levels 'not particularly high'

Rental levels 'not particularly high'

Despite an increase of 18 per cent in the past four years, rental levels in the UK are not very high at present, it has been stated.

The chairman of government-backed tenancy deposit scheme mydeposits.co.uk, David Salusbury, said that rental yields are in fact "quite low" in historical terms, although he added that this comes with the caveat that some properties are overpriced and subject to a correction being brought about by the credit crunch.

What the credit crunch will not necessarily do, however, is dictate what happens to rental levels, he commented, saying: "Whether or not that will have an effect on rents is a different matter because rents will be as much a function of supply and demand as anything else."

Rental averages revealed in the Rentright Residential Rental Price Index have shown a gradual fall in rental levels in the past year, with the August 2008 average being £588 compared with £726 in August 2007.

However, this month's figure represents an increase on the July average, which was £577.

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