The month of June 2010 saw yet another increase in average rental prices across the UK*.

It’s not entirely clear what’s causing this when so much else in the economy appears stagnant but experts are discussing a range of factors including:

• a reduction in the overall availability of rental properties caused by the ongoing difficulties in obtaining BTL (buy to let) mortgages;
• more people renting as they hold off buying property waiting to see what the market will do in late 2010 and 2011;
• large numbers of BTL owners withdrawing from the market place during the worst of the 2008/9 recession.

It’s interesting that rental rates are increasing at a time when the conventional property market is showing some signs of slowing down again – even though some people are describing this as a routine seasonal adjustment.

There’s no doubt that the entire property marketplace, including rentals, is still in a state of flux and it’s proving difficult to interpret the, at times, contradictory indicators.

It remains difficult to find consensus amongst the experts as to the true prognosis for the economy going forward or the BTL sector as part of that.

What does seem clear though is that average rental prices, after a great period of uncertainty, have now risen back to close to their peak 2008 levels*.

On the whole, this news seems to be very positive for BTL owners. The fact that there are more people out there looking to rent and that prices are rising, may give many BTL owners confidence after two or more fairly difficult years.

That, in turn, may further boost the market.

If you are a landlord, it’s therefore perhaps worthwhile taking a little extra trouble to ensure that your property stands out from others and that you have everything in order including your insurance for let properties. If that means getting out the paint tins and brushes, then so be it!

Why?

Tenants are still very selective about the property they rent and those little touches and reassurances may make all the difference.

The recent improvements in rental prices are most welcome for BTL owners. In times of uncertainty, making hay while the sun shines is probably the order of the day!

*Source
http://www.landlordzone.co.uk/blog/news/rents-surge-as-supply-diminishes