More than one third of letting agents in the UK have reported rises in rent, Clear Property Investment has found.

A survey by the National Landlords Association showed London had witnessed the highest rise in rents but other areas and regions were following suit.

In some cases, where competition was high, potential tenants had been asked to offer sealed bids.

Property portal RightMove claimed 55 per cent people renting said they felt trapped in their current property.

Curzon Investment Property director James Moss said thousands of potential property buyers were being forced to rent because they couldn't afford large deposits or were being denied finance due to stringent credit restrictions.

"Combine this with rising student fees and job losses across the public sector, and what we are left with is facing up to being a nation of renters as the home buying dream is eroded," he said.

In the case of sealed bids, these are handed over to the landlord who makes a final decision on who he'd like to rent his property to.

Chris Norris, of the National Landlords Association (NLA), said sealed bids were, on the whole, usually used by letting agents.

"The sealed bid has been seen as a fairer option, compared to a situation when a landlord may agree a tenancy in good faith, only for another would be renter to come along and say that they are prepared to pay 20% more," he said.

"Many landlords might be tempted to take such an offer, but that is not fair on someone who thought they had found somewhere to live."

Many letting agents also criticise the practice of sealed bids claiming there is danger that tenants may secure a property unseen then, after moving in, realise it was over-valued and move again in six months time. Landlords are then left with a void property together with the cost - and inconvenience - of finding another tenant.

Meanwhile, Dorian Gonsalves, managing director of letting agents Belvoir, says he is hopeful for the future of the buy-to-let market. He asserts that the Government's Comprehensive Spending Review will continue to impact favourably on the private rental sector in 2011.

He added: "Families are becoming poorer and may have to move further afield to find employment. Potential homeowners will continue to have difficulties obtaining mortgages and saving for a deposit.

"With an estimated 490,000 public sector job cuts planned, the residential sales market is bracing itself to face another dip. Families on lower incomes will have dramatic benefit reductions, including the end of a council house for life policy."

All of these factors, Mr Gonsalves said, would result in an increase in the number of landlords prepared to invest in buy-to-let properties.

For further information on property investing and buy-to-lets contact any of our Clear Property Investment team.

 

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