Rent Rises Are Tailing Off Say New Reports

30 May 2012 Categories: News

Rent Rises Are Tailing Off Say New Reports

Two new reports released this week have shown rent rises across the UK for the first time in three months, but the negligible amount of the average rise indicates that rental amounts have virtually hit their peak and are now quickly tailing off.

The first report, compiled and released by London estate agent Frank Knight shows that rent prices in the capital city rose by 0.1% in April; the first rise seen for three months and the first after a total fall of 0.8% since the last rise. Similarly the quarterly report released by LSL showed a 0.5% rise across theUK, bringing the average rent back up to £709.

Even with this positive news though landlords have been warned not to expect or rely on rent increases during 2012, and especially inLondonwhere supply is now outstripping demand. According to the Frank Knight report April saw a 56% rise in the number of new property instructions but only a 5% rise in tenant registrations – a sure sign that tight budgets and increasing unemployment is taking its toll on the city.

David Brown, LSL’s commercial manager echoed this sentiment saying that at present rents are rising at a faster rate than the average wage and as a consequence tenants are having to put property moves on hold. He commented, “With a faltering economy and further public sector job losses to come, an increasing number of rented households will see their finances stretched.”