Rental prices set to ‘cool down'
The supply of private rented homes is likely to increase in 2013 according to a new forecast from property search specialist Rightmove.
A survey of 2,394 private landlords found that 17 per cent intended to buy additional properties this year, with just 7 per cent looking for a quick sale, while 12 per cent of ‘accidental’ landlords (owner-occupiers who end up letting properties as a result of changing circumstances) are looking to buy another home (see graph).
The increase in supply is likely to have ‘a cooling effect’ on rental prices, according to Rightmove.
Miles Shipside, housing market analyst at Rightmove, said: ‘A marketplace where landlords are achieving satisfactory returns will relieve some of the supply pressure in 2012, though the task seems to be falling on the comparatively rag-tag army of private landlords rather than more strategic institutional investment.’