Increased rental supply pushes prices down

The price of rent has dropped following an influx of unsellable properties put up to let on the market, the Royal Institution of Chartered Surveyors' (Rics) residential lettings survey for quarter three revealed today.

Rics spokesman James Scott-Lee said: "The market place has become more and more competitive as many vendors have been forced to become amateur landlords, creating an inevitable downward pressure on rents where supply has matched demand."

The survey reported an increased number of would-be vendors letting properties as an alternative to selling.

Greater supply of rental properties has resulted in decreased prices as buy-to-let landlords and amateurs battle for rents.

Meanwhile, a Scottish estate agent has claimed that some commercial mortgage holders are set to struggle to make their payments if rental prices continue to fall.

Executive chairman of Ryden Lettings, Brian Adair, told the Sunday Herald that the sums will not add up for many buy-to-let landlords.

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