Falling rents could help borrowers manage debts

In the third quarter of 2008, the cost of renting a property decreased for the first time in five years.

The drop, says The Times, comes ‘as home-movers flooded the rental market with properties that they could not sell’.

According to James Scott-Lee of the RICS (Royal Institute of Chartered Surveyors), “Many vendors have been forced to become amateur landlords, creating an inevitable downward pressure on rents.”

“Falling house prices may be bad news for many would-be sellers,” said a spokesperson for debt management company Gregory Pennington, “but the increase in the number of rental properties available – and the resulting drop in rental prices – will provide some relief to tenants who have been hit hard by today’s economic troubles, whether they’ve seen their income drop or been driven into debt by the high price of gas bills, petrol, food, etc.

“This doesn’t mean everyone will see their rent go down, but it does mean that landlords will be aware that there’s more competition out there. For people struggling to manage their debts, this will be welcome news.”

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