Rental Market Update for May 2010
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Rents in the UK are likely to start showing some decent increases year on year over the coming months. There is of course a lag effect on rents as a property rented today won't be available until next year, so today's price is effectively held from six months to a year in advance. As a result, rents don't appear to be as volatile as property prices.
Tenants would be well advised to lock in their rents as best they can and check what increases (if any) are built into their agreement. Landlords can start to look forward, in the main to good rental gains in the future. These are already hitting short supplied areas such as London and higher rents seem to be spreading out to the home counties, so the rest of the UK is likely to really start seeing the effects between now and 2011.
The biggest issue for tenants will be a lack of properties available, so if you want to rent, best do it sooner rather than later or you might get caught between not being able to buy anything nor being able to find anything to rent!
For regional rental reports READ MORE
Headline Statistics from Belvoir Lettings and FindaProperty
From Belvoir's perspective many of their 140+ offices rents remain fairly static, across all regions, bar the North West. READ MORE
Regional Performance:
FindaProperty Index for Q2 2010 shows the London to be the best performing area at 6.4% up, with Scotland not far behind at 4% growth in rents. The North West has been showing some great signs of recovery recently, but has slipped back to 2.5% BELOW last year's rents. Meanwhile the North East England continues downward, by 3.7% YoY and a 2.6% month on month. Yorkshire and Humber is still suffering with rents down slightly year on year (-0.7%) but down a staggering 9.3% March versus previous quarter.
FindaProperty
Rental Index Highlights
Key statistics | Feb 09 | Mar 09 | Apr 09 | May 09 | Jun 09 | Jul 09 | Aug 09 | Sep 09 |
Average Rental Per Month | £830 | £827 | £819 | £819 | £823 | £825 | £829 | £829 |
Average Rental Yield | 4.63% | 4.65% | 4.60% | 4.56% | 4.56% | 4.55% | 4.57% | 4.56% |
Key statistics | Oct 09 | Nov 09 | Dec 09 | Jan 10 | Feb 10 | Mar 10 | Apr 10 | May 10 |
Average Rental Per Month | £830 | £831 | £820 | £804 | £814 | £820 | £826 | £839 |
Average Rental Yield | 4.53% | 4.56% | 4.52% | 4.45% | 4.5% | 4.5% | 4.54% | 4.57% |
For more indepth rental market views, read
Belvoir Lettings' 'Regional Rental Report';
Savills' Spotlight on Student Housing and the latest survey from
RICS.
ARLA also have latest data suggesting an increase in the number of tenants defaulting on payment.
Links to useful Renting and Letting Reports
ARLA RICS RLA NLA For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit
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Kate on video and for media appearances, contact:
Sylvia Tidy-Harris
STH Management Tel +44 (0) 1530 263221
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Fax: +44 (0) 1530 264018
