National rental rates on the increase as London sees a slowing growth
New analysis has shown that while the market for rental homes in London is dropping away slightly, those who are leasing out their properties elsewhere in the country are bringing in a high level of yields. This has been brought about by the fact that the average monthly cost of living in privately rented property has gone up for the third year in a row.
London is mostly seen as the place in the UK where prices are most resistant to the external economic problems, but this year the rental costs in the capital dropped surprisingly. Endsleigh reported that the average property in London cost £1,330 per month in 2011. This was a three per cent reduction when compared to the same time in 2010.
However, despite this, the overall average price for letting a house still rose last year. In 2011, the mean price for a property sat at £706 per month. This was higher than the £688 which was reported in 2010, and the £663 in the year before.
Grant Stevens, general manager of letting services at Endsleigh, said: "Rents in London have been rising for a long time so it is no great surprise that there is finally a cooling in prices. However, nationally, year-on-year, the picture is one of a very buoyant rental market and, with the overall rise in-keeping with inflation, it won't unduly affect the pockets of either landlords, who are enjoying good yields, or renters, who are able to access a whole range of properties."
The most expensive properties are still found in the south, while Wales and Scotland provide far cheaper opportunities.
He said that the biggest cost associated with being a landlord at the moment comes at times when there is damage caused to a property. This can often sit at a higher price than tenants pay for their property, and if fixes need to be made on more than one occasion, it can seriously affect the ability of landlords to make money from their venture.
Posted at 04:44 22/08/2012