According to a recent report produced by HomeLet, a tenant referencing service, rental prices have fallen for the second consecutive month.
June rents, in comparison to June 2016, have fallen by 0.3%, placing the average UK rent at £908, compared to £910 last year. In London, rents have also fallen, but for three months in a row, taking the average rent in the capital to £1,524, compared to £1,564 last year. During May this year, rent fell by 0.3%, which was the first annual decrease it has seen since 2009.
According to HomeLet, this could be due to the uncertain economy. The report states that although the demand for private rentals is high in comparison the low supply, landlords remain reluctant to charge high rents when tenants are experiencing affordability problems. There are other changes in the rental market that work in the tenant’s favour; from 2018, letting agents will not be able to charge fees to renters, while the Queen’s speech mentioned a proposed cap on the amount required for a deposit, limited to four week’s rent.
HomeLet reports that London tends to be a driver of rental changes elsewhere in the country. As London rents have fallen by 2.6% last month, other areas of the country may also be experiencing lower rents. Five regions out of twelve experienced a fall in rents during June.
In regions where rent remains high, a CeMAP qualified mortgage advisor may be able to help find a mortgage deal lower than the price of rent.
