View more on these topics

Rents rise for third month in a row

Rents rose for the 10th consecutive month but growth is slowing in the run-up to Christmas, the latest buy-to-let Index from LSL Property Services.

In November, the average UK rent rose to £692 per month – squeaking ahead of October’s record high of £691.

But he growth of 0.1% represents the smallest increase since rents began to rise in February.

Recent rent increases seem to have ended in several parts of the country.

The east of England and the east midlands reported falls of 3.1% and 2.4% in November, whilst rents dropped by 1.9% in the south east and by 0.6% in the north west.

The marginal monthly national gain was largely driven by rents rising by 1.8% in London, where they hit £992 per month – an increase of 9.2% in the last year.

The average yield rose slightly to 5% in November, thanks to increasing rents, contrasting with a slight decline in the value of an average rental property.

David Brown, commercial director of LSL Property Services, says: “In the run-up to Christmas, we tend to see the rental market slowdown somewhat. Tenants prioritise Christmas spending over setting aside money for moving home. But with the limitations placed on the supply of rental property by the lack of mortgage finance, rents have continued to increase – even though the rental market’s peak season is behind us.

“Nevertheless, rent increases have begun to slow in several regions, and we expect this trend to continue across the country in December and January. However, the UK’s buy-to-let market still faces a shortage in the supply of rental properties and we don’t anticipate that the slowdown in rent rises will last long into 2011.”

But tenant arrears provided less positive news for landlords in November.

Tenant finances were in worse shape than October, with 9.7% of all UK rent unpaid, rising from 9.3% in the previous month.

Unpaid rent totalled £231m across the UK in November, up from £221m in the previous month.
 

Recommended

Week in NUMBERS

£1.9bn – the amount that Christmas shoppers will spend on their credit cards in the run-up to December 25th, according to Sainsbury’s Finance. £2,000- the amount UK present buyers throw away by failing to plan their purchases in advances, according to First Direct. 15°C – the temperature experts recommend you keep your heating at to […]

GEORGE-PATELLIS.jpg

New entrants should already be regulated

It is great to see the positive publicity being generated by short-term lenders entering the market. This boost to the sector’s profile helps illustrate how buoyant short-term finance is and this will drive competition. But with such a profile comes a degree of responsibility. It’s vital the industry doesn’t lose the impetus of any positive […]

Robert_winfield.gif

At last house prices leave the front page

It’s brilliant that all the fuss about the Mortgage Market Review and Retail Distribution Review is pushing news about property prices further back in the newspapers. For years property prices have been the primary headline to generate sales or get traffic on websites but in light of regulatory changes it is old news. I shouldn’t […]

Newsletter

News and expert analysis straight to your inbox

Sign up