The beginning of 2012 was not so great for the residential rental sector in UK, but now it is showing signs of recovery. Property experts “Move with Us” released their first Rental Index report tracking 150,000 rental properties across UK. The figures show that the average rents fell slightly in the third quarter, but recovered in September. The prices have also increased by 2% on an average over the last 12 months, which adds up to an increase in the rent of £20 per month.
The index indicated an increase in demand for rented properties and also higher quality accommodation for long term rents. Owning a home is still not easy in UK, what with many aspiring homeowners struggling to qualify for mortgage. This is perhaps one of the factors that prompt people to stay in rented property for longer periods of time.
In London, there was a massive rental price inflation around the time of Olympics, but they have now fallen back to a more affordable level. Rents in Yorkshire and Humber, which used to have one of the more stable rental rates in UK, have increased by 7%. This could perhaps also be because the rents are finally catching up with those in the other areas.
East Anglia properties have seen an increase in 2% in advertised rents; West Midland rents rose during the beginning of the quarter, dropped slightly and stabilized around £655; North East rents have seen an increase of 2%; and rents in North West has increased by £17 from last year.
Rents are further expected to increase in the last quarter of 2012. There is no telling how long the upward trend will continue because sooner or later the effects of low wage inflation and high energy costs are bound to make an appearance. But for now, rents are on the rise.
Photo courtesy: Capt’ Gorgeous