The Guardian has recently published an article stating that rents in Britain has dropped for the first time in at least five years. These figures came from Rightmove.
But why have they dropped?
The decline has occurred due to landlords flooding the South East with hundreds of rental properties thus distorting the national picture. Due to the rise in available to rent properties, it has pushed down rent in the South East by 2.3%.
What Does This Mean for the Property Market?
It’s safe to say that the state of the UK’s property market is broken. With the increase in demand for new housing and a stagnant rate of new properties being developed, millennials are now thought to be spending up to three times more of their income on housing compared to their grandparents. It’s no wonder why properties are becoming ever exceedingly difficult to afford.
However, this means business is booming for landlords, with the number of households privately renting rocketing to a shocking 17%.
According to recent research, landlords are looking to invest in properties in areas outside of London. Places such as Surrey, Buckinghamshire and Berkshire are looking more appealing because of good commuter links and demand still remains strong.
Despite rents in London falling at an annual rate of 3.3%, experts are still predicting the cost of renting in the capital to increase. This is due to landlords taking their investments elsewhere which is reducing the supply of rented properties available.
If You’re a Landlord in the South East
If you’re a landlord in the South East of England, be prepared to have to lower your asking rates due to an increase in supply. However, as aforementioned, this is only temporary as experts predict that by 2021 5.8 million or 24% of households will be renting privately.
If you’re a landlord and are looking to rent your property, or maybe you’re a tenant looking at renting in Witham and would like more information on what this means for you, whatever your situation, get in touch with WitLet today on 01376 502 500 to see how we can help you.