Rental prices are now £19pcm higher than in Q1 2010.. The rise in rents is down largely to the fall in the number of available houses to rent... The new budget may lead many to consider delaying their first steps on to the property ladder...
(PRWeb UK) July 5, 2010
Rental prices rose 2.3% to £839pcm over the past quarter, the third consecutive quarter of rising asking prices. Rental prices are now £19pcm higher than in Q1 2010. The annual change in asking rents has gone into growth for the first time since the start of the Rental Index in January 2008, with the year-on-year change now standing at 1.9%. Despite the recent rises, rents remain 3.9% or £34pcm lower than the peak of £873pcm in Q1 2008.
The rise in rents is down largely to the fall in the number of available houses to rent and high demand from individuals who might have bought had the lending market not been restricted. Stock levels of property to rent remain at their lowest level since October 2008.
In the regions, the majority of areas saw asking rents rise, the highest rise being in homes to rent in Yorkshire & Humberside (+3.4% to £553pcm). Only Wales and the North East experienced falls, (-0.9% to £641pcm and -2.3 to £591 respectively).
Both houses and flats for rent in London continue to rise in expense with rental values up 2.6% in Q2, now standing at £1729 (£44pcm higher than Q1). On an annual basis asking rents in London are now 6.4% higher than a year ago. The number of rental properties available in London fell by 4% in Q2, which put upward pressure on rents. Landlords in the capital are also enjoying an increase in rental yields, up to 4.71% from 4.62%.
Nigel Lewis, property expert at FindaProperty.com, said:
“The new budget may lead many to consider delaying their first steps on to the property ladder and, as more people rent, this will put more pressure on the lettings sector. A small number of properties came on the market during the second quarter but overall stock levels are still down. Demand is likely to outstrip supply for a while yet and rents will keep being pushed up as a result.
“Landlords, many of whom rode out the downturn watching rents plummet as unwanted sales stock was offloaded onto the rental market, will be cheered and it’s tenants who are now facing a painful market.”
- Asking rents increased by 2.3% in Q2 2010 to £839pcm from £820pcm in Q1 2010
- Average rental values are now 1.9% (£16pcm) higher than a year ago (£823pcm)
- The supply of properties available to rent fell by 2.7% over the last quarter