LSL: Rental Costs Down by 0.8%
Good news for renters, slightly bad news for landlords as a survey has suggested that the cost of renting a home in England and Wales have fallen again, making it the second month in a row in December.
Image sourced from: PlanetPropertyBlog.com
According to LSL Property Services, the average rent fell by 0.8% during December compared with November, bringing the cost down to £711 a month.
However, the LSL said that compared to December 2010, renting was 4% more expensive.
LSL did add that more tenants were getting behind on their rental payments because of the impact of Christmas spending during the festive period.
They found that at the end of December, 10.7% of all rent was either late or unpaid, compared with 9.3% in November.
The ARLA (Association of Residential Letting Agents) said that some landlords would be faced with difficulties.
Tim Hyatt, President of ARLA said “It is more critical than ever to take references and conduct thorough research before singing a tenancy agreement.”
He carried on saying “Seeking advice from a professional, licensed letting agent is the best way to ensure tenants and landlords’ rights are protected.”
David Newnes, Director of LSL, which owns Your Move and Reeds Rains, said “The rental market was sheltered from the full impact of the seasonal lull by the strength of underlying tenant demand as many prospective renters took the opportunity to move in the run-up to Christmas at a time when the market is traditionally less competitive.”
The LSL survey shows that rents fell in all regions, excluding Yorkshire and the Humber, the West Midlands and the East Midlands, with monthly rent in London had fallen for the first time in 2011.
In December, only two regions saw annual rents rise which were the South West and North East of England.
Matt Hutchinson, Director of Spareroom.co.uk said “It may be premature to say the UK rental market has peaked and that we are about to see rents fall away. What we are seeing is a temporary blip, a natural cooling-off period for the rental market.”
He carried on saying “The fact is the fundamentals have not changed. Demand is still significantly outstripping supply of new rental stock, and while December was a quieter month for the rental market, January and February are typically two of the busiest months. We would expect to see upward pressure on rents resume in early 2012″
Graph data sourced from BBC News
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