UK rental prices could continue to post increases

Rental prices in London and the south-east of England are likely to remain buoyant thanks to a reduction in the amount of property available on the market, it has been suggested.

Tom Entwistle, director at LandlordZONE.co.uk, is confident that property investors in the more prosperous regions of the UK will see rental yields remaining steady and even experiencing growth in the future.

According to the latest FindaProperty monthly report, rent asking prices on a national scale for properties saw a growth of 0.7 per cent last month, while the number of properties available to rent fell by 4.2 per cent over the same period.

A lack of property is said to be the most pressing issue affecting the rental sector, the Association of Residential Letting Agents has said.

Mr Entwistle added: "Demand from tenants, particularly in the south-east, is steady and could even be rising because of the difficulties in the recession.

"Rents should remain firm and could grow steadily in the more prosperous areas."

In addition, the property expert recommended that potential landlords conducted the necessary research before entering the rental property market.

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