What’s Going On With Average Rents?
So are average rents increasing or decreasing? Yesterday saw two conflicting reports regarding this. The DPS have stated they believe average rents have dropped for the first time in 6 years while ARLA have said landlords are hiking up rents to cover their tax losses.
Julian Foster, managing director at the DPS, said: “The decrease in average rents across the UK could represent the beginning of a substantial development for the housing sector and a significant indicator for understanding the wider economy.
“Rent growth began to slow in summer 2016, and the slip into negative figures suggests that there is a genuine long-term issue affecting the private rented sector.
“The UK-wide decrease implies that there is more at play than a short-term or local correction to excessive prices.”
Its important to note the South East was one of 4 areas which actually say an increase in rent by 1.01% to an average rent of £879.00 per calendar month but this is still quite a shock and flies in the face of what you would expect given the tax changes affecting landlords. Arla, on the other hand, comment on what you would expect: Rents are being raised at an incredible rate.
David Cox, chief exec of Arla said “Supply is still too low and almost a quarter of tenants are experiencing rent hikes every month as landlords try to recoup the costs lost trying to keep on top of all the recent legislative changes – including the recent energy efficiency deadline.”
“For the last two decades, successive Governments have passed significant amounts of complex legislation for landlords, none of which have been properly policed or adequately enforced – but most of which cost decent landlords a lot of money.”
So what do we think? We have seen a rapid jump in rental prices landlords expect to achieve and would tend to agree with Arla. If you are looking for advice on your property, how to market it and what you would currently expect to achieve for your property, please call us for a free, no obligation property appraisal on 01376502500