Rented accommodation values rise

Buy-to-let investors are facing increased competition in the rental market from homeowners who are choosing to rent their properties out rather than sell them, an group of estate agents has said.

The Association of Rental Lettings Agents (ARLA) produced figures showing that the rented property market experienced an increase in the number of higher value homes becoming available to let at the start of the year as the number of family-sized homes on the market increased amid the uncertain economic conditions gripping the nation.

The average capital value of rental houses shot up by 11.6% from £401,400 to £447,900, according to first quarter figures from the ARLA. The last time the market peaked at such levels in 2007, when the average capital value reached £442,600, there followed a sustained period of decline.

However, the trend is not a national one as the rise was as result of higher value properties going on the rental market in London and the South East. All the other regions experienced an average drop of 5.2%.

Source: Assetz