Landlords bide their time in falling market

The latest ARLA member survey reveals signs of stability in the capital values of rental properties, with houses outside of London and the South East increasing in value by 1.5%, though the value of flats fell by 3.8% over the last quarter.

However, the South East saw falls of 4.9% for houses and 5.9% for flats, and London saw even more marked decreases, with the value of rental houses dropping 4.3% and flats 12.8%.

Ian Potter, head of operations at ARLA, says: "This suggests that the oversupply of new build flats in some areas may be coming to an end as local authorities, housing associations and bargain hunters take up the slack. This has also helped to stabilise rents in some areas."

The average weighted value of houses to rent is £400,400, down from £414,800, though ARLA highlighted there are big differences by area.

The average value for prime central London is £828,900, compared to not much more than a third of that in the South East at £306,000, and around a quarter, £221,800, in the rest of the country. Overall, the average fall in value of houses in the rental market is 8.3% in the past year.

IFAonline

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• Mortgages
• landlords