Investors confident rental demand will keep rising

30 July 2008

Property investors are putting their money on growing numbers of Brits being forced to rent rather than buy their own place, new figures suggest.

Carried out to coincide with this year's Property Investors Show, research has found that around two in three landlords feel that, while capital returns may remain steady or even decline slightly, rental yields will keep rising.

This will be driven by the fact that properties to buy still remain out of the reach of most buyers, with thousands of professionals now struggling for space as they wait to make a move to their own home.

Commenting on the study's findings, Nick Clark, managing director of the Property Investor Show, said: "They [landlords] have recognised that the demand for rented accommodation is currently the greatest consideration and is boosting rental yields considerably, particularly in London.

"Landlords can take advantage of the lower prices coupled with rising rents and they are certain to achieve good returns over the long term."

Anyone struggling for space as they wait to make a move onto the property ladder may want to look into safe storage solutions until the market becomes more favourable.

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