Surveyors see a decline in rents

The proportion of surveyors reporting a fall in rent in the three months to the end of April hit its highest since the poll of surveyors began in 1999.

The Royal Institution of Chartered Surveyors' (RICS) found that 55% more surveyors and estate agents reported a fall in rents than a rise. The fall was most marked in Scotland and in London. The survey suggested that rents would continue to fall in thoming months, but at a slower rate.

Demand

A balance of 25% of surveyors expected rents to fall during the coming quarter, nearly half the 41% who predicted further falls during the previous three months.

Surveyors' views on property yields suggested that rents were falling at a faster rate than house prices.

"Property transactions are starting to rise from very low levels and the influx of supply in the rental market has slowed as vendors begin to find buyers," said RICS spokesman Jeremy Leaf. "Demand for rental property is still high but tenants have been able to take advantage of a flooded market to negotiate lower deals. Even so, the downward pressure on rents should ease in the coming months providing some good news for landlords."

NEWS REPORT FROM http://news.bbc.co.uk/1/hi/business/8113413.stm