» Read the complete article

Buy-to-let landlords who have stayed the course over the last eighteen months are now being rewarded with rising rents and a dramatic reduction in stock levels.

According to the FindaProperty.com, the number of rental properties on the market plunged by 10% between September and October, following a 6% fall the previous month, bringing supply back to the level last seen almost a year ago.

And as all good landlords know, the greater the strain on housing supply the more demand for rental property and the better chance of securing a higher rent.

The website also says that a number of agents reported that the strengthening sales market, which enjoyed a further 0.7% rise in house prices this month, is now attracting a rush of 'accidental landlord' sellers who have been temporarily renting their properties as they wait for house prices to recover.

As a result, rents climbed by 0.1% this month to an average of £830, continuing the clear trend of recovery since April as competition increases among tenants seeking homes to rent. This increased demand is also reflected in the number of days properties are taking to let, which now stands at just 58 days compared to 71 days at the start of the year.

Michael O'Flynn, director at FindaProperty.com, says: "Buy-to-let landlords have had a tough time over the last eighteen months, but those who have managed to hang on in the rental market, despite a dramatic oversupply of properties, falling rents and rising unemployment among tenants, are now breathing a sigh of relief.

"Despite the fact that the economy remains uncertain and unemployment is still rising, the oversupply of rental properties is correcting itself almost as quickly as it occurred, and as long as the sales market continues to strengthen this clear out of stock is likely to continue. Rents are on a clear road to recovery with six consecutive months of stable or rising prices. Provided the 'double dip' theory of a second fall in sale prices doesn't come to fruition, landlords could be set to enjoy a further recovery in rents over the coming months."

SOURCE: Findaproperty.com, 28/10/09

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog