UK renters pay less for first time in six years

March 18, 2017 by Brendan

Renting

According to a report by Countrywide, estate and lettings agency, the first annual drop in UK rent was recently recorded for the first time in the last six years.

February’s figures show that the average UK rent had fallen by £5 to £921 a month. This is the first decrease annually since 2011. According to Countrywide, the increased level of sales which took place prior to the introduction of the new stamp duty rules, had pushed up the supply levels of homes to be let by 10%. In addition, the demand for rental properties has fallen slightly, especially in London, which may be related to Brexit.

The capital has demonstrated the fastest drop in rents, which have fallen by 4.3% over the year, to an average of £1,246 a month. However, in some parts of the UK, rents are rising. In Wales, the average rent has increased by 5.3% over the year, to £636 a month, while in England’s eastern region, the average rent has risen to £945 a month.

The report states that although tenants will welcome the drop in rent, the average rent in the UK is still higher than they were during the peak in 2007. In contrast, since the financial crisis, average UK incomes have only increased slightly.

As rent in the UK continues to be costly, some individuals may be contemplating buying a home as an alternative. To ensure that this would be a viable option, advice from a CeMAP qualified mortgage adviser may be the recommended course of action.