A recent survey conducted on property rentals show that rates have hit a new high of £692 on average. According to the LSL property index, rentals have grown for the tenth straight month.
Giving some more insights in the UK market, the report said that rentals varied widely among regions. The rental growth however, has slowed down in November and has registered only 0.1% growth over the month of October. However, on the flip side – unpaid rentals have risen also with 9.7% of total due in arrears. The survey covered 18,000 samples, which were rented through letting agents such as Your Move and Reeds Rains.
The report carried some interesting and diverging trends across different areas. For example, London saw rates rise by 1.8% last month due to strong demand.
However, rental rates are actually falling in other areas. Rates have fallen by 3.1% in eastern England and in East Midlands they dropped by 2.4% in November.
The negative trend was also witnessed in the south-east of England where rates were down by 1.9% and by 0.6% in the north-west of England.
Explaining further, David Newnes of LSL said: “With the limitations placed on the supply of rental property by the lack of mortgage finance, rents have continued to increase”.
However, except London, rent increases have begun to slow in several regions, and we expect this trend to continue across the country in December and January” Newnes added.
Describing the fall in rentals as short-term Newnes said, “The UK’s buy-to-let market still faces a shortage in the supply of rental properties and we don’t anticipate that the slowdown in rent rises will last long into 2011”.