'Varied Picture' For UK Rents

Although average rents in the UK increased during July, there are some areas of the country that registered a decline in the amount tenants have to pay for their homes...

Although average rents in the UK increased during July, there are some areas of the country that registered a decline in the amount tenants have to pay for their homes. This is according to the latest HomeLet Rental Index, which revealed that the south-west experienced the biggest drop in rents on a monthly basis.

Residents in this part of the nation saw their outgoings on accommodation fall by an average of 2.2 per cent in August, compared to July. Meanwhile, the north-east is the only part of the UK to register an annual decline in rents. At the other end of the scale, London and Wales were the biggest risers, with rents up by 12 per cent and 6.5 per cent respectively, compared to the same time last year.

And HomeLet has recorded a change in tenant demographics, most notably with the age of average renters, which now stands at 31.9 years old and is a two-year low. John Boyle, managing director at the company, commented: "When looking in closer detail, it appears that slightly more young men aged 18 to 21 and more women aged 22 to 25 are renting a home when compared to August 2010 and 2009." He noted that a lack of social housing and rising numbers of students in the country could be factors affecting the change.

In addition to the shift in the age of renters, there has also been downward movement regarding the length of tenancies - with the north-east one notable exception. When looking in-depth at the region, HomeLet observed that the region experienced a drop in typical salaries during August and cited figures from Nationwide showing that house prices in the area have also fallen by 8.8 per cent between August 2010 and the same month this year. On a UK-wide basis, the financial institution recorded an average drop of 0.4 per cent in housing capital values during the same period.
 

- Friday 16 September 2011

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