Demand for rented homes rises alongside property prices

Demand from first time buyer has slumped even further it seems, as property prices fell for a fifth month in a row in November, according to new statistics.



Hometrack figures show that property prices fell by 0.8 per cent in November. Property prices usually slow down in the winter months around Christmas, but this year the effects seem to be happening a month earlier than usual. The November falls follow 0.9 per cent falls in October and 0.4 per cent in September and indicate that the shortage of mortgages is still preventing many people from getting onto the property ladder.



Perhaps the most notable change in the claim from Hometrack that demand for properties fell by 4.3 per cent in November. More people are deciding to wait out the property crisis. As a result, more tenants are signing new leases for their rented properties and buy-to-let landlords are reaping the benefits as a result.



Hometrack’s director, Richard Donnell, explained, "It is inevitable that this trend will continue as we move into the new year from both a seasonal and sentiment perspective."



Mortgage approvals have hit a 19-month low according to the Land registry. Meanwhile, job uncertainty, low wage increases and concerns about prices falling further in the near future, have led to a stronger rental market and weaker property market.



Recent research has found that void periods, or the amount of time the average rental property sits vacant in a year, has fallen dramatically this year to just 30 days. This is another reason why becoming a landlord is such a tempting investment opportunity for many people at the moment.



One of the most important things for prospective landlords to remember is to take out full buy-to-let property insurance to cover any building and repair costs that result form renting a property out to tenants.