| And the city also has more property available to let than before — including three and four bedroom houses — because their owners are unable to sell them.
The so-called “credit crunch” has made it much tougher to get a mortgage, meaning many first-time buyers and those on lower incomes struggle to get a deal.
In turn, fewer houses are being sold and prospective sellers are forced to rent properties for want of buyers.
Robert Murray, a partner at Lickley Proctor Lettings in Bell Street, said his firm had seen an increase in the number of houses available for let, as well as more customers looking to rent.
“People who are struggling to sell their properties are coming to us to rent them out, and nervous buyers would rather rent to see what the story is,” he said.
“There’s a very good rental demand for one-bedroom flats in particular, but that’s not where sellers are having problems. There is a bigger uptake on houses as well, though, including three- or even four-bed family homes.”
Paul Letley, a partner at J&E Shepherd, the city’s biggest letting agent, said that pattern was replicated at his firm, and blamed the banks for the problems with getting credit.
“There’s a general uncertainty, and a lot of blame could be laid at the doors of the banks,” he said.
“It appears that the British people have to pay the price for their mistakes abroad.”
He added that changes in the way housing benefit is paid — now direct to tenants, via a local housing allowance, instead of to the landlord or factor — meant that tenants had greater choice and could settle for a cheaper property.
“That’s distorted the market,” he said.
“And there’s a kickback where the tenants on housing benefit are allowed to keep up to £65 in a calendar month, so they might pay less for their flat and keep the rest.
“So there’s now more competition for rental properties in those lower price brackets.”
But it’s not all good news for landlords — both agents warned that the demands placed on the owners of rented properties have increased, leading to higher costs.
New regulations on houses in multiple occupation have been introduced, while compulsory energy efficiency certification will come into force in January. |
