Agents fear collapse in rents

It’s a great time to be a renter, according to the Guardian:

People who are unable to sell their properties because of the collapse of the residential sales market are now flooding the lettings sector with unusual, high-specification homes that are often being offered to tenants at bargain prices.

‘You have properties that have been refurbished for sale - real high-spec properties - now coming up for rent,’ he says. ‘These often make traditional rental properties, with their B&Q kitchens, somewhat tired by comparison and therefore more difficult to let.’

In the short term, this is obviously great for tenants.  However, I think this will only increase their precarity in the long term.  Living as a stop gap ‘until the market recovers’ does nothing to make you feel secure in your home.  I recently saw an advert that states (excuse the caps, they are from the letting agent):

PLEASE NOTE THAT THE RENTAL HAS BEEN REDUCED AS THE PROPERTY IS STILL ON THE MARKET FOR SALE AND TENANTS ARE EXPECTED TO CONDUCT VIEWINGS WITH PROSPECTIVE BUYERS.

So not only do you not have any security, you are expected to do the agents job as well - with obvious potential for fun!  The real issue here is that the owners letting them out will quickly tire of subsidising the tenant while waiting for the market ‘to recover’.  I was recently offered a let that was on the market for £275,000 at £750pcm.  This gives a yield of 3% after agents fees.  After costs, I can’t really see this being a winner for the landlord - it would barely offset the monthly fall in value of the property.  How long could it last?