Rental prices 'are currently low'

27-Aug-2008

Rental prices are fairly low at the moment, an expert advises.

With house prices plummeting and mortgage acceptances becoming harder and harder to obtain, renting could be an alternative option for first-time buyers.

David Salusbury, chairman of mydeposits.co.uk, says rents are at a low at the moment as rental yields - which are presented as a percentage of rent received over the course of a year in relation to a property's value - are also diminishing.

"Property values are rather higher than they should be and, as we know, there is an adjustment underway, called the credit crunch, which is having an effect on property values," he continues.

Rents, Mr Salusbury adds, are much a function of supply and demand and are much closer to the "historical norm" than property prices.

Mydeposits.co.uk is a tenancy protection scheme which safeguarded 200,000 individual tenants' deposits worth £177 million in its first year of operation between April 2007 and March 2008.


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