Lettings boom in current housing crisis

By: Ian Bates
Submitted: 2008-09-30 00:03:59
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Lettings boom in current housing crisis.  I will discuss in this following article the recent changes to the housing market.  Where historically we have seen a growth in housing prices we are now beginning to see a growth in rental income.  There has been a natural change to the balance between houses to sell and lettings.  Looking at estate agents in Eastbourne I will discuss how some of these firms have managed to change their working practice. 

The letting market has never been so strong.  It is quite incredible to see that over the last few months, we have seen for the first time, an increase in the rental price for property.  Over the last five to six years we have found that the rental incomes have stayed pretty much neutral.  With little or no increase at all, this of course depends on what part of the country you live.  Looking at estate agents in Eastbourne we concede there have been very few trends until the last few months.

All we have seen over the last few months is the increased demand to rental property.  This has often been driven by the sheer fact that buyers cannot raise a mortgage.  It is also beginning to show that there is an increasing in the number of redundancies, with unemployment on the increase.

As far as unemployment is concerned we certainly haven't reached the levels of a decade ago.  But looking very much at the lettings market, all we have seen is an increased desire for people to move into rented accommodation.  Where banks were once falling over themselves to lend you money, they find themselves in a position where they are increasing their mortgage rates, and this is stifling purchasers being able to purchase a new home.

Landlords have found that for the first time in a long time, that they are able to demand a higher return on their rental income.  It is a simple case of supply and demand.  As more people look to rent, and there were fewer properties available per person looking to rent, then you find that this drives the prices of rent up.  Looking at estate agents in Eastbourne you can see that many of the firms have seen this as an increasing trend within their own businesses.

It will be interesting watching estate agents in Eastbourne to see how long this trend runs, to see whether it will continue when the housing market slowly begins to right itself.  Good luck to all of those looking to purchase or indeed pay rental incomes on your new properties.

Ian Bates runs a network of Estate Agents in Eastbourne

Article source: Expert Articles

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