17th
Jan 2024
A trade body’s recent survey highlights the top reasons for tenants choosing ‘homes’ and no guesses needed that the report found that over 61 per cent place rent and size of deposit at the top of the list.
Second is parking areas with 22.2 per cent and third is whether a property is fully furnished.
A spokesperson for the trade body, says: “Given the current market conditions, it is clear that many tenants have a desire for lower upfront costs and providing them with this choice is very important to us.”
The survey’s report coincides with the release of an insurance company’s rental index finding a second successive month’s small fall in rents by 0.9 per cent.
Throughout the UK all of the regions, except the East Midlands, saw a 0.3 per cent rise in rent, however the firm states the monthly rent prices have declined with many experiencing this for a second consecutive month, London’s fell by 2.2 per cent.
However the firm says the wider picture is that overall rental prices have sky rocketed by 8.01 per cent in 2023 alone and as high as 19.6 per cent since3 2021.
In Scotland and Greater London the rent increases since 2021 are 23.4 and 21.4 per cent respectively.
The insurance agency claims that tenants are apparently just paying 33.4 per cent of their monthly pay on rent which is a two per cent increase since last year.
The firm’s spokesperson, says:?“January is a good time for us to reflect on the previous year with our HomeLet Rental Index and make predictions as to what is to come in 2024. The New Year starts with restrained optimism, as our records show a minor decrease in monthly costs for the second month in a row.
“In fact, rental prices have fallen in all regions across the UK with the exception of the East Midlands. Even in the capital, where tenants now pay an average of £2,127 pcm, rents have dropped by almost £50 per month since our November data was released.
“Unless we see some dramatic changes, 2024 looks set to bring more of the same. Landlords will have to do battle with a familiar array of struggles, including a lack of stock, rising costs and prohibitively expensive buy-to-let mortgage rates.
“For those reasons, combined with lingering high inflation and the country’s financial crises, it’s unlikely we’ll ever see rental prices drop to the rates they were at when we were exiting the Covid-19 pandemic. The impact of that, alongside questionable budget decisions and overall weak management of British finances, means that we estimate by this time in 2025, rent increases of between five and 10 per cent won’t be surprising.”
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