26
Aug
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.
