Every cloud, as the saying goes.......

This from today's FT. Evidence of one of the fundamental attractions of property investments, surely - when capital growth slows, rents increase. Demand simply shifts...


‘Rise in rental demand brings boom for landlords

February 1 2008

Estate agents are seeing booming demand for rental property as first-time buyers and foreign workers defer buying homes amid continued uncertainty over prices.

Agents around London and the south-east in particular are seeing up to 25 per cent more activity in their lettings businesses compared with a year ago. Many have waiting lists of tenants and are finding that new lets take just a few days to fill.

Much of the demand is coming from young professionals and City workers who are not prepared to buy into a weak housing market.

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‘Landlords are also managing to secure significant rent increases. Richardson at Winkworth said tenants renewing their agreement were typically paying 5-10 per cent more per year, while new occupants were having to pay as much as 20 per cent more than they would have done a year ago.’