Rent increases holding up.

In further evidence that the housing market is stabilising a report in the Staffordshire Sentinel confirms that rents are increasing and holding at higher levels. With the knowledge that some will point to the unfairness involved during difficult times, this is market forces led and is only bringing rents back in line with traditional formulas of return against property value. It has been at least seven years since return last climbed against property value and is long overdue. The good news behind this is that more and more Landlords are looking to increase their portfolio as confidence returns and comment would suggest the market is now going to show steady increase and no further decline. This further increase in rental property will ensure that prices do not overstretch against market demand and should be looked upon as the natural process of keeping rents manageable. The only figure I would question is that 17% of UK housing stock is now privately rented, as this figure is some two years out of date and at current increase levels 20% would be closer to the truth.