Residential lettings prices 'likely to hold up'
Rental prices among residential lettings agents are likely to hold up over the coming months, according to one expert.
Mark Garner, managing director of landlord information website LettingZone, said he does not expect to see any sharp increases in rents.
However, they will not fall below their current level and could rise by three to five per cent over the next few months, he predicted.
"Rents will hold up," he remarked. "They will nudge a little bit higher and certainly won't go down, but they are not going to double either."
Mr Garner explained that the summer period tends to be a quiet one for UK lettings agents as many people go away on holiday.
"It could be quite buoyant between now and the summer holiday time," he added. "Then after the summer holidays, in the run-up to Christmas, we could be busy then."
His comments come as figures point to growing demand in the rental sector.
Research from mortgage provider Paragon Group showed that almost half of landlords saw a rise in demand for their properties in the first quarter of the year.
More than half are expecting demand to increase further over the next 12 months thanks to social housing reforms, lifestyle choices and the problems facing first-time buyers.
Nigel Terrington, chief executive of the company, said there is evidence that this rising tenant demand is feeding through into higher rents.
"Prospects for landlords in the private rented sector are high and they can expect this to continue throughout, and beyond, 2011," he stated.
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