The biggest UK estate and lettings agents have recorded the first in last 6 years fall in annual rents. The rents are falling the fastest in London down by 4.3% over the year time to an average £1,246 a month.
The average rent in Britain in February this year was £921 a month, that's £5 lover than last year and that was the first annual decrease since 2011. The one of the largest agent Countrywide have compiled the figures and said the buying frenzy ahead of the hike in stamp duty last year pushed up the supply of the new homes for letting by 10%. However possibly because of Brexit tenants demand has fallen that's particularly in London and South East.
It seems that the rents are falling the fastest in our Capital, down to 4.3% as we mentioned before, what is means tenants are paying around £63 less a month compared to last year.
On average in South East rents have also dropped by 2.6%.
Number of tenants looking for homes gone down by 3% that’s in London.
LSL property services has also confirmed that our capital has the most challenging market also mentioned slow market in South. They said the annual house price growth dropped to 2.4% from f3.9% comparing to month before.
Looking at other parts of England the monthly rent has gone up, so let’s have a look where and by how much. In Wales the rent in last 12 month was up by 5.3% to an average £636 per calendar month, meanwhile in the East of England rose by 3.1% to £945. In England, other than London the tenant demand is rising that what Countrywide says. LSL Property Services also confirms that prices in Birmingham and Merseyside had hit a new peak. Average prices in Birmingham have hit £190,504 that's up 6.2% on the year.
So, what is the biggest percentage price rise? In former mining town Merthyr Tydfil prices jumper by 12.7% over the past year but at an average of £120,682 however they are still among the cheapest homes in the UK.
Nationally turnover in the property market is falling, with number of transactions down by 9% on the year. Flats had the biggest reduction in sales volumes falling 15%.
So, is it all to do with Brexit, England leaving the EU? Johnny Morris research director at Countrywide said '' Economic and housing sentiment – both in sales and rental markets- has been affected by our vote to leave the EU in London more than anywhere else. This uncertainty causes tenants to be more cautious, meaning less likely to move and more likely to look for cheaper accommodation e.g. sharing. With the Private rented sector home to around the three-quarters of new migrants, any future substantial shift in migration patterns would likely have a knock-on effect on rents.''
For tenants, any falls at all in rent will come as a relief after so many years in constant rises. This is very small decrease over the past 12 months as the average rent in Britain is still £112 higher than the previous peak in 2007. As the community secretary Sajid Javid said to the House of Commons more than half of take-home pay swallows the rent.
Source: The Guardian