Currently viewing the tag: "rental values down"

In a new report released this week, property group LSL have reported that UK asking price PRS rents have fallen for a second month running.

  • The average monthly Private Rental Sector (PRS) rent in England and Wales now stands at £705.
  • The biggest decreases were in the South-West and East Midlands on a monthly basis, with rents falling by 1.5% and 1.4% respectively.
  • Rents also dipped in London, falling by 0.3% – its second monthly decline in the first quarter of 2012.
  • Rents rose in two regions, increasing by 0.7% in the South-East and 0.6% in the East of England.

Despite a monthly decrease in average monthly rents, overall, rents have increased by 4.9% annually in London, the region with the fastest long-term growth. Despite recent declines, London’s average rent was 0.2% higher in March than at the end of 2011. The next biggest annual increase was in the East of England, where rents rose by 3.4%. On an annual basis, rents have only fallen in two locations, dropping by 2.2% in the East Midlands and 0.4% in the North-West.

David Brown, commercial director of LSL Property Services, said: “The recent dip in rents will be welcome news for tenants. However, drop-off in rents is likely to be short-lived. With the passing of the Stamp Duty deadline increasing the cost of moving, and banks’ funding conditions likely to limit high-value mortgage lending to first-time buyers, would-be buyers will be more reliant than ever on rented accommodation. As we head into a traditionally busier period for the market, a redoubling of tenant demand is likely to push rents higher once more, despite the improved supply.”

Contrary to ARLA, LSL says tenants’ arrears have been going down. In March, it estimates unpaid rent at £267 Million (GBP), down by 6% on February’s figure.

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