The average advertised rent fell in almost every region in the third quarter of 2013, reaching £965 per month compared with a high of £970 but rents in Greater London continue upwards, according to the latest rental index from Move with Us.
The reductions in most regions are tied in with the launch of Help to Buy scheme which is starting to impact the rental market. ‘Those who would ordinarily rent are opting to buy, putting downward pressure on rental prices as demand reduces. With this in mind, we anticipate further falls in advertised rents in the coming months, as the market starts to stabilise and reverse the over inflated rental prices that we have seen in the past few years,’ said Robin King, director at Move with Us.
‘Greater London is the anomaly of the last quarter as the only region to have seen significant rises in average asking rents, further proof that it operates in its own bubble separate to the rest of the UK. Rents in the capital have increased by £55 over the third quarter, the strongest period of prolonged growth for over 12 months,’ he explained.
‘With the Help to Buy scheme providing tenants with a real alternative to renting a property, landlords should look to protect their rents and maximise yields by offering well maintained properties with added benefits, such as a fast WiFi connection as part of their tenancy agreement. They should also ensure their properties are energy efficient to help keep bills down and ensure early compliance with 2016’s regulation changes,’ he added.
After hitting a low of £2,149 per month, average rents in London increased sharply in August to £2,210 per month, the highest level recorded since the fourth quarter of 2012, the index shows.
The growth in London is in contrast to the declines in both East Anglia and the South East’s advertised rents which had previously prospered from the high rental prices in the capital, and the close proximity to the social and work opportunities London provides.
In line with the majority of the regions in Britain, rents in the South West fell in the third quarter of 2013, continuing the trend which began in February this year following a peak of £815 at the end of 2012. In the third quarter rents fell by a further 1.32% from the end of the previous quarter, to £779 per month. The gradual decline in average advertised rents in the region since the start of the year has resulted in a market where the average rent is now lower than rates were in October 2012.
In the third quarter of 2013 average advertised rents in the South East declined for the first time in 12 months falling by £14 or 1.24% to £1,134 per month. The growth experienced in the...
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