Rental Costs Finally Fall After 10 Months
According to a BBC article, a survey has shown that the cost of renting a home in England and Wales has fallen for the first time during November, after 10 months.
Image sourced from The Guardian
LSL Property Services have said that the price of rent for a typical property dropped by 0.4% compared with October, to £717 a month.
However the survey found that the average tenant is still paying roughly 3.5% (£25) more in rent than the previous year.
Unfortunately in some regions such as Yorkshire and the Humber, and Wales, they have seen prices rising rather than decreasing but according to the LSL, who owns letting agents Your Move and Reeds Rains, prices did tend to fall at this time of year with the East Midlands seeing the biggest drop of 2.2% a month.
Director David Newnes of LSL said “Following their relentless march upward throughout the year, rent rises have taken a pause for breath.
Landlords are looking to avoid having properties vacant over the Christmas period, and can be less aggressive with pricing as tenant activity slows in the run-up to the New Year.”
Compared with the previous month (November), rents in London, Yorkshire and the Humber, Wales and the West Midlands still rose, with the average cost of renting is to be expected to rise again at the start of 2012 according to Mr Newnes.
It is believed that the reason for the fall in the cost of renting, coincides with a decrease in the number of tenants getting behind on rent payments.
Mr Newnes carried on to say “We are still also seeing the impact of a changed tenant mix, which is helping keep arrears below historic levels.
A large proportion of current renters are would-be credit-worthy buyers, were they able to provide a big enough deposit to satisfy tight mortgage lending criteria. These tenants are typically financially sound, and less likely to experience payment issues.”
He also added though that because of the economic climate and the risk to jobs, tenant arrears were likely to rise again next year.
Data sourced from LSL
Anglian Home Improvements, formerly known as Anglian Windows, have been selling and installing high quality double glazing products since 1966.
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