There are signs of the slowdown inside the rental marketplace, however long-term there is no allow up for trying tenants
Average rents fell over London as well as the south-east throughout December inside the initial signal of the slowdown inside rampant rental inflation, according to figures from LSL Property Services, that owns making stores The Move plus Reeds Rains.
It found which the average lease inside England plus Wales was down 0.9% inside December to £734, with London enjoying a fall of 1.5% as well as the east of England as well as the north-east dropping by 1.7%. Just the West Midlands, the south-west plus Wales saw tiny lease rises over the month.
But despite December falls, 2012 marked another year inside that rents outstripped average pay rises. LSL mentioned which about average inside London they rose by 6.3% over the year, when inside the south-east they were up by 3.9%, compared to pay rises running at lower than 2%.
Rent rises have taken a thick toll about tenants, that are increasingly dropping behind with repayments. LSL mentioned lease arrears rose sharply to £326m inside December from £241m inside November, equal to 10.1% of all rents over England plus Wales.
David Newnes of LSL said: “The amount owed hit degrees not watched because last Christmas. In the absence of real income increases inside 2012, the more load of high rents was met by tenants cutting back about alternative essentials.”
But LSL warned which December’s fall is temporary, with rents marching up again inside 2013. “It is a seasonal blip instead of an about-turn inside the marketplace. Long-term difficulties stay for hot customers seeking to leave the rental marketplace, plus Funding for Lending is proving a double-edged sword.
“While rates are coming down for those with big deposits, very low savings rates are hitting those nevertheless striving to pull together a deposit – a issue accentuated by the record low base rate.”
But buy-to-let landlords face limited difficulties accessing finance, according to figures from Arla, the organization of residential making agents. It mentioned lending to landlords jumped by 8% inside the final quarter of 2012 to £four.2bn, with all the average quantity of buy-to-let qualities owned with a landlord increasing from 7 to 8 inside 2012. Ian Potter of Arla said: “The newest information suggests landlords are carefully however, concertedly improving their portfolios; activity is returning to the buy-to-let marketplace.”
Personal finance plus cash information, analysis plus comment | guardian.co.uk
There are no comments yet. Why not be the first to speak your mind.