3rd
Feb 2014
A property specialist has just released figures from its' rental index (prices actually charged for rent rather than asked for) for the last quarter in 2013. It shows that the North is catching up with the South on monthly rent charges as the historically expensive areas of Greater London and the South East have seen average monthly rents fall; whilst the cheaper areas have seen an increase in fortunes with rents going up.
Major increases in rent occurred in areas that had previously experienced slower growth to the Capital and affluent areas in the South East. One of the highest increases was in Wales with an average rise in that quarter of 9.62% (£59), the North East had an average increase of 9.16% (£58) with Yorkshire and Humber of 6.38% (£36).
Tenants who are looking for rented accommodation are enjoying lower prices in the South East where rents on average are £12 less a month and Greater London rents have fallen by £24 in the last three months of 2013. It should however be noted that these falls preceded the strong growth that occurred in the first six months of last year.
Overall at the end of 2013 it shows that the performance of the rental market was extremely healthy with an average rent of £986 per month, this begs the question whether 2014 will see the average monthly rent rise above £1,000 a calendar month.
Robin King, director of the property specialist, said: “Recent data from the Office for National Statistics (ONS) show how the number of adults between the ages of 20 and 34 living with their parents has increased by a quarter in the last 18 years.
"Rising asking rents have been a big contributing factor to this rise making it harder for first time buyers to rent while at the same time being able to save the deposit to buy their own home.
“Overall average rents are rising in the UK, and coupled with the lack of supply for prospective buyers in the sales market, means more people are renting.
"Landlords have responded to the change in the market by raising the standard of rental properties and lengthening contract terms to provide tenants with security and better living conditions so renting is a viable alternative to buying.
“The drop in average rents in Greater London and the South East is seasonally typical as demand for rental properties decreases in the run up to Christmas. We expect that this will correct itself in the first quarter of 2014 as we are already seeing an influx of tenants looking to move at the start of the New Year.
“Average asking rents in the usually slower performing regions such as Wales and the North East went against the seasonal trend in the last quarter of 2013 and increased, closing the gap between the cheapest and most expensive places for tenants to rent in the country.
"This is likely to have been caused by the lack of supply in the sales market in the North of England which pushed rental prices up by almost 10% in areas such as Wales and the North East.”
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