Rental costs fell in November

| December 16, 2011 | 0 Comments
Rents fell in November

LSL Property Services, which includes Your Move and Reeds Rains, announced a 0.4 per cent drop in rent for a ‘typical’ property to £717 in November.

Rents have been rising throughout the year, driven by increased demand from people unable to afford to buy a propert and November’s decline marked the first fall in rent for 10 months.

However, although this represents a fall compared with the previous month, it is still 3.5 per cent higher than a year earlier and rents are expected to start rising again in the New Year.

LSL recorded significant regional variations in November, with rents falling in some regions, particularly the East Midlands where they were 2.2 per cent lower, but continuing to increase in Wales; Yorkshire and the Humber; the West Midlands; and London.

LSL director David Newnes said: “Landlords are looking to avoid having properties vacant over the Christmas period, and can be less aggressive with pricing as tenant activity slows in the run-up to the New Year.”

LSL also announced a reduction in the number of tenants in arrears with their rents.

This was attributed to ‘a changed tenant mix’ with an increasing number of tenants only renting because they are unable to afford a deposit on a house.

Yesterday revealed that it is now cheaper to buy a home than to rent one in 47 out of 50 of the UK’s largest towns.

Zoopla also highlighted soaring demand for rental properties from people who are unable to raise the deposit needed to buy their first property.

Combined with low interest rates, this has made renting a home around 15 per cent more expensive than owning one.

In comparison, at the end of 2010 it was 10 per cent more expensive to rent a property than to buy one in 40 out of 50 of the largest towns.

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