Average advertised rental prices in Britain have fallen to £972 a month as landlords with vacant properties aim to attract tenants before Christmas, according to data provided by Move with Us.
The last quarter of the year is traditionally a period of cyclical decline for average advertised rents, with prices usually falling by around 5%. This year is no exception, as average advertised rental prices across Britain dipped by 0.41% in November to £972.
However, several regions bucked this trend with the North East, East Midlands and Wales experiencing positive growth of between three and seven percent.
Advertised rents in London fell by an average of 2.17% on the back of a rise in supply, while the North East has seen a 6.46% increase in advertised rents.
The North East continues to suprise with a 6.46% increase and average advertised rents breaking £746 per month in November. Advertised rents in this region have increased by 14.9% in two months. Improving employment and promising economic growth are key factors in the current rent levels.
Wales and East Midlands
Wales and the East Midlands also bucked the seasonal trend and experienced significant increases in November with average advertised rents rising by 3.02% and 3.45% respectively. The West Midlands also registered positive growth, recovering slightly from the 1% decline in advertised rental rates that was experienced in October.
Rental markets in Greater London saw a slight decline, with advertised rental prices falling by 2.17%. The average advertised rent now stands at around £2,246 per month, £49 less than the October peak. These conditions suggest that the usual end-of-year decline in advertised rents could be on a larger scale than previous years. A ripple effect into the commuter belts resulted in advertised rental prices in the South East falling by 0.43%.
East Anglia, Scotland, North West and South East
Advertised rents in these regions fell by just under 1% in November indicating the start of the usual annual cyclical decline in East Anglia, Scotland, the North West and the South East. These setbacks should be reversed by Q2 in 2013 as demand for rental properties goes back up after the Christmas period and starts to increase in the New Year.
Robin King, Director, Move with Us, commented: “Advertised rental prices provide an early indicator of what is likely to happen next in the market and the statistics in this month’s Rental Index demonstrate further evidence of a stable private rental sector with demand and supply relatively balanced during th
Article courtesy of Property Investor Today