Rent Rise Ahead Written by Julia Garber Monday, 24 May 2010
Rent Rise Ahead

The latest figures for construction of new homes make grim reading for people hoping to buy or rent a place this year, but property investors who have had a long period of famine can now look forward to a better future. In short, it means rents are likely to go up.

According to the Department for Communities and Local Government, Britain is building less than half the number of homes that we were in the peak in March 2007, although the trend is now on the way up. And remember that even in 2007 the housing shortage was a matter for very considerable concern.

London in general has seen a pickup in construction in the East End but it is far too little to make much of a dent in pent-up demand in the short term. In Marylebone and Regent's Park there is little scope for new development in any case, because of the density of Georgian and Regency houses, many of which are listed and most of which are in conservation areas where development is very restricted.

So we see a bright outlook for property investment in the medium term, with prices remaining stable and rents rising. The area is popular with tenants because of its good tube links, proximity to most of London's top universities and the wide variety of amenities.

So my advice to investors is to get in now. And if you are looking for a place to rent, now would be a good time too....

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