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Landlords to benefit from house price rise

Date: Mon, 27 Feb 2006

Landlords are benefiting from the recent rise in house prices as more people are forced to rent rather than buy.

New figures from Hometrack show that house prices increased by 0.4 per cent during February and the property research firm estimates that the average cost of a property now stands at £161,700 – meaning that many wannabe house owners are forced to stay in rented accommodation whilst they save for a deposit.

"A key driver of higher house price inflation over February has been a surge in the number of new buyers coming into the market," said Richard Donnell, Hometrack director of research.

There has also been a fall in the number of houses for sale on the market and this has allowed sellers to push-up their asking prices over recent weeks.

"It is a general shortage of homes for sale that really underpins the growth in average values over the last month," Mr Donnell added.

Landlords in the South of England are benefiting from this lack of properties, with areas such as Cambridge and some London boroughs reporting price increases of more than two per cent.


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