Buy to let landlords 'may see rental growth'

03 November 2009

Written by Gavin Elley

Those with buy to let mortgages could be set for higher rental income in the coming months, it would seem.

Lucian Cook, director of residential research at estate agent Savills, said that the reported reduction in rental market stock may result in "quite strong rental growth" over a long-term period.

He was commenting after the FindaProperty.com Rental Index indicated that the stock of rental properties in the UK decreased by more than ten per cent in October, which was the largest fall ever reported since the index was formed.

Recent Association of Residential Letting Agents research also found that the number of so-called accidental landlords has fallen in recent months, which suggests that the rental market is not as saturated as it was earlier in 2009.

Mr Cook remarked: "I suspect that you will see stock on the rental market become eroded over a period from here on in [and] get back to much more normal levels.

"I suspect that will also bring some degree of stability into rental levels."

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