Report from the independent estate agency in UK, haart, noticed a fall
in the average residential rent in UK up to 4.3% in May. The report
further states a marked fall at round £919 a month in May for
residential properties in London, in the month of May.
Also interesting fact was a fact that, outside London, saw an increase in rental rates by 0.7%. to £791 over the same period. However, on the whole, the overall average rate of rent has have only been slowing since the beginning of 2012.
The trend is seen as a sigh of relief for tenants. As such, with the current economic changes and stagnancy being experienced, owning a home is as much difficult as selling and therefore, renting is the only way out.
This is making people to seek a house for rent in London and South East.
While a report from Knight Frank shows rental dips in prime central London by 0.3%. The report also stressed on the lower supply in relation to the demand of the rented houses. This is seen evident in mid-market, where the mid- level city jobs have been affected by the cutbacks. 'With the ongoing troubles in the Eurozone and associated uncertainty in the finance sector, there is little sign of this reversing in the coming months,' the report says.
With regards to the higher and lower rental brackets, the market is seen much more active as it sees a rise in seasonal demand of family houses with four or five bedrooms, priced above £2,000 per week are being preferred as families look to settle over the summer before the academic year starts in September.
Further there were also the reports which stated the negative effect in terms of shortage or no houses on rent during the summer Olympics in London. Had this been effected upon, then the rental market in UK would have surely seen a surge. However, the reports stated, 'rental accommodation in prime London could be in short supply due to this summer's Olympic Games have clearly not yet been borne out. While this could be because this high demand for short lets simply wasn't there, it could be argued that the demand was in effect removed by the move by LOCOG, the London Organizing Committee, to release a further 600,000 hotel room nights which were previously set aside for officials and the media but are no longer required.'
The demand could rise further when in summer families search for houses before their children start going to school in September and also the with that there will be higher rate of foreign student lettings, who will be coming to London to study further, sometime in August.
That said, other findings of the report were low tenant registration down to 8% and property viewings down to 7%, new property instructions were up by 21% and while tenancies commenced were up 1% while the ratio of new applicants to new instructions registered a fall from 4.6 in 2011 to 3.6 in 2012.
All in all, UK did see a downfall in its average rental rates and that this is a sign of relief for tenants but also what is a bit depressing is the fact that the mid-market is suffering from deflated demand. Else from that, at present the tenancy scene in UK seems to be stable.
Also interesting fact was a fact that, outside London, saw an increase in rental rates by 0.7%. to £791 over the same period. However, on the whole, the overall average rate of rent has have only been slowing since the beginning of 2012.
The trend is seen as a sigh of relief for tenants. As such, with the current economic changes and stagnancy being experienced, owning a home is as much difficult as selling and therefore, renting is the only way out.
This is making people to seek a house for rent in London and South East.
While a report from Knight Frank shows rental dips in prime central London by 0.3%. The report also stressed on the lower supply in relation to the demand of the rented houses. This is seen evident in mid-market, where the mid- level city jobs have been affected by the cutbacks. 'With the ongoing troubles in the Eurozone and associated uncertainty in the finance sector, there is little sign of this reversing in the coming months,' the report says.
With regards to the higher and lower rental brackets, the market is seen much more active as it sees a rise in seasonal demand of family houses with four or five bedrooms, priced above £2,000 per week are being preferred as families look to settle over the summer before the academic year starts in September.
Further there were also the reports which stated the negative effect in terms of shortage or no houses on rent during the summer Olympics in London. Had this been effected upon, then the rental market in UK would have surely seen a surge. However, the reports stated, 'rental accommodation in prime London could be in short supply due to this summer's Olympic Games have clearly not yet been borne out. While this could be because this high demand for short lets simply wasn't there, it could be argued that the demand was in effect removed by the move by LOCOG, the London Organizing Committee, to release a further 600,000 hotel room nights which were previously set aside for officials and the media but are no longer required.'
The demand could rise further when in summer families search for houses before their children start going to school in September and also the with that there will be higher rate of foreign student lettings, who will be coming to London to study further, sometime in August.
That said, other findings of the report were low tenant registration down to 8% and property viewings down to 7%, new property instructions were up by 21% and while tenancies commenced were up 1% while the ratio of new applicants to new instructions registered a fall from 4.6 in 2011 to 3.6 in 2012.
All in all, UK did see a downfall in its average rental rates and that this is a sign of relief for tenants but also what is a bit depressing is the fact that the mid-market is suffering from deflated demand. Else from that, at present the tenancy scene in UK seems to be stable.
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