Average Rents Fall for the First Time in 10 Months

03 January 2012 Categories: News

Average Rents Fall for the First Time in 10 Months

The last two months of 2011 saw the average property rent fall for the first time in 10 months, a sign that the rental property market may be levelling off. Although the average fall was only 0.4% some areas, and in particular the East Midlands and the South East, saw falls of over 2% during the course of November and December. The annual rental inflation also fell over the last quarter of 2011 and now stands at 3.5%. The average rental price however is still around £25 more than it was at the end of 2010 and so the buy to let market is still a strong investment.

When asked about the future for private rental incomes, the commercial director of LSL Property Services, David Brown said “Following their relentless march upward throughout the year, rent rises have taken a pause for breath. Landlords are looking to avoid having properties vacant over the Christmas period, and can be less aggressive with pricing as tenant activity slows in the run up to the New Year. But across the country, the limited supply of rental accommodation means there will still be strong upward pressure on rents in the early part of 2012.”

It may be then that the first quarter of 2012 sees the average property rent rise back to, or even above, its former level.