Rents in the UK may have fallen in October, but historically they are stable, according to the latest HomeLet Rental Index. Last month the average sum paid by tenants stood at GBP 815, down 4.6 per cent from September. However, this remains 2.7 per cent higher than October 2012, placing the market on a firm footing overall.
This is good news for those considering property investment in the buy-to-let sector and illustrates a more sustainable market environment. From October 2010 to October 2013 the average UK rent increased less each year, beginning at 4.8 per cent before going down to 3.1 per cent and 2.7 per cent growth. This trend can even be observed in London, where the rate of rental acceleration slowed by 2.3 per cent between October 2011 and October 2012, and four per cent between then and the same month in 2013.
Last month, half of the UK's regions noted decreases in rents, with three seeing rises of more than two per cent. This included the East Midlands, Greater London and the north-west, where prices increased by 3.2 per cent, 2.6 per cent and 2.1 per cent respectively.
Gary Abraham, sales and marketing director at Homelet, said: "Our new figures could suggest the effect of the economic downturn in 2008/2009 is beginning to reduce. Government investment in schemes, such as Help to Buy, also appears to be helping to alleviate the recent so-called housing crisis. There's certainly more confidence within the housing market at the moment and an increasing amount of first time buyers are now purchasing their own properties."
However, the private rental sector's run of success isn't over and it is expected the Build to Rent scheme will boost the number of buy-to-let homes in the market. Longer-term tenancies will also make renting a more viable option for families. This won't translate into higher rents, however, which is seen as a good thing for the health of the sector as a whole.
- Tuesday 19 November 2013