We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Downward trend in UK rents 'ends'
Options
IveSeenTheLight
Posts: 13,322 Forumite
from http://news.bbc.co.uk/1/hi/business/8071659.stm
Downward trend in UK rents 'ends'
Rents fell when the property market was flat
Typical UK rents remained unchanged in May after nine consecutive months of falls, according to a property website. The average asking rent remained at £819 a month, said Findaproperty.com, although this was still 5.5% lower than the same month a year ago.
A rising supply of flats meant these were becoming cheaper to let, in contrast to houses.
Every area of the UK has seen average rents fall in the past year, the survey of 414,000 properties suggested.
'Competition'
There has been an increase in "accidental landlords" who have been forced to let their properties during the housing market slump because they are unable to sell them.
TYPICAL MONTHLY RENTS
Brighton: £1,058
Cardiff: £737
Newcastle: £756
Birmingham: £650
Nottinghamshire: £580
Sheffield: £542
Source: Findaproperty.com
As a result tenants have been in a position to haggle for lower rents or incentives - such as the inclusion of basic bills in the rent.
"With such a dramatic increase in available properties over the past 12 months, the competition to secure and retain tenants is fierce," the group said.
But the survey reported that the rate at which more properties had come onto the rental market in May had slowed compared with a year ago.
Yet there are differences depending on the type of properties on the market, according to Andrew Smith, head of research at Findaproperty.com.
"The flat market seems to be lagging behind [houses] with increasing supply levels and asking rents that continue to fall," he said.
UK breakdown
The largest month-on-month increase in rents came in Scotland, the survey found, where the average rose by 0.9% in May to £693 a month.
Driven by rises in rent for properties in Birmingham, there was a 0.3% rise in typical asking rents in the West Midlands. London and the South East of England also saw average rents increase slightly.
Other regions all saw a fall in average asking rents, with the biggest drop - of 1.6% - seen in the East Midlands, the survey found.
But the figures show that every nation and region in the UK had lower average asking rents in May than the same month last year.
"There is still a long way to go until the recovery is in full swing," said Mr Smith.
Downward trend in UK rents 'ends'
Rents fell when the property market was flatTypical UK rents remained unchanged in May after nine consecutive months of falls, according to a property website. The average asking rent remained at £819 a month, said Findaproperty.com, although this was still 5.5% lower than the same month a year ago.
A rising supply of flats meant these were becoming cheaper to let, in contrast to houses.
Every area of the UK has seen average rents fall in the past year, the survey of 414,000 properties suggested.
'Competition'
There has been an increase in "accidental landlords" who have been forced to let their properties during the housing market slump because they are unable to sell them.
TYPICAL MONTHLY RENTSBrighton: £1,058
Cardiff: £737
Newcastle: £756
Birmingham: £650
Nottinghamshire: £580
Sheffield: £542
Source: Findaproperty.com
As a result tenants have been in a position to haggle for lower rents or incentives - such as the inclusion of basic bills in the rent.
"With such a dramatic increase in available properties over the past 12 months, the competition to secure and retain tenants is fierce," the group said.
But the survey reported that the rate at which more properties had come onto the rental market in May had slowed compared with a year ago.
Yet there are differences depending on the type of properties on the market, according to Andrew Smith, head of research at Findaproperty.com.
"The flat market seems to be lagging behind [houses] with increasing supply levels and asking rents that continue to fall," he said.
UK breakdown
The largest month-on-month increase in rents came in Scotland, the survey found, where the average rose by 0.9% in May to £693 a month.
Driven by rises in rent for properties in Birmingham, there was a 0.3% rise in typical asking rents in the West Midlands. London and the South East of England also saw average rents increase slightly.
Other regions all saw a fall in average asking rents, with the biggest drop - of 1.6% - seen in the East Midlands, the survey found.
But the figures show that every nation and region in the UK had lower average asking rents in May than the same month last year.
"There is still a long way to go until the recovery is in full swing," said Mr Smith.
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:
0
Comments
-
For now.
Thats if the tennants dont void and leave their vile little landlord with lots of debt that they cant pay...0 -
Some nice BBC bias there.
"There is still a long way to go until the recovery is in full swing," said Mr Smith.I
Increasing rent is recovery?0 -
Downward trend ends my ar*se0
-
themanbearpig wrote: »
Increasing rent is recovery?
Huh? I read it as a "recovery in rents for landlords".
I can only assume you read it as "recovery in everything" perhaps.
Edit: £1000 a month for Brighton! Fook me.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
reduceditem wrote: »Downward trend ends my ar*sethemanbearpig wrote: »Some nice BBC bias there.
"There is still a long way to go until the recovery is in full swing," said Mr Smith.I
Increasing rent is recovery?For now.
Thats if the tennants dont void and leave their vile little landlord with lots of debt that they cant pay...
easy guys, you're getting yourselves all excited and starting to froth at the mouth and getting yourselves all excited again. all the headline says is that rents have stopped falling for the first time in many months.
just embrace and accept that fact... it's just one month0 -
Rents only went down if you were moving and negotiated and if properties just like that were 10-a-penny.
If they went up much more, I'd seriously be looking at living in a camper van. It's still there as an option.
I know somebody who rents a 4-bed LA house in a nice part of outer London for just £20/month more than I pay for a studio.0 -
Some landlords possibly cannot afford to reduce rents any further. Rising mortgage costs for landlords means that the market may be stabilising.
As property prices have further to fall this will make buying a far more attractive option to renting. Which in a way is a normalisation of the market.0 -
easy guys, you're getting yourselves all excited and starting to froth at the mouth and getting yourselves all excited again. all the headline says is that rents have stopped falling for the first time in many months.
just embrace and accept that fact... it's just one month
To keep banging on my little drum, for stats like this a single month is just noise. Nothing more.0 -
Some landlords possibly cannot afford to reduce rents any further
If they fall 100% I might have to get myself a Job :eek:'In nature, there are neither rewards nor punishments - there are Consequences.'0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.3K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards