| Rental Indices | Oct-12 | Nov-12 | Dec-12 | Jan-13 | Feb-13 | Mar-13 | Apr-13 | May-13 | Jun-13 | Jul-13 | Aug-13 | Sep-13 | Oct-13 |
| Homelet | £795 | £773 | £782 | £777 | £777 | £774 | £793 | £797 | £811 | £826 | £851 | £757 | £815 |
| LSL | £744 | £741 | £734 | £732 | £731 | £735 | £736 | £735 | £737 | £738 | £743 | £757 | £758 |
| Belvoir | £680 | £681 | £684 | £687 | £686 | £690 | £689 | £687 | £685 | £687 | £687 | £689 | £686 |
This months rental reports are a little contrary, with companies such as Move with Us, Belvoir Lettings and Homelet suggesting rents are slowing and even falling in some areas, while Acadata/LSL and Sequence Group are reporting rent rises.
The one rental market to buck this trend though are rent rooms. SpareRoom data shows “average room rents have increased by 4% since 2012, with the average double room now costing £116 a week including bills.”
However, despite the ‘overhyped’ headlines in the media about rents, in the main all indices agree that rents are not rising as fast as inflation and haven’t for some time.
So from a tenant perspective, rents are still pretty good value for money while for landlords, those hoping to use rental income to supplement their income in retirement need to be aware their earnings are being severely eroded.
Feedback from the reports and agents we have spoken to suggest growth is quite erratic on a month by month basis. It also shows rental trends in the North East don’t track what’s happening very well due to the huge variation in rents from £300 per month to well over £3,000 which will always distort averages.
Belvoir Lettings comment “Feedback from the offices suggests that although there have been some good rental rises over the last three years, rents in a the North West, South West and South East do appear to be levelling out during 2013. Rents in East Anglia, the West Midlands, Yorkshire and the East Midlands however, are still experiencing rental recovery. In London, the average rent for October was £1,481 per month, which is around 5% higher than the year to date average of £1,410 per month. (Q3 13)”
While in the world of room rents, SpareRoom report “The regions driving the increase are Scotland and Northern Ireland, where room rents have risen by 11% and 7% respectively, since last year. Rents in inner London have held firm with just a 1% rise, where supply has risen to match demand. SpareRoom's Rental Index saw a 50% rise in the number of rooms for rent in London postcodes since 2012. (Oct 13)”
Finally, landlords need to be prepared for rates to go up over the coming years. The average is 5.5%, so make sure your property can cashflow through these rises, if not, forecasts suggest the next year may be the better time to sell.
For the full rental summary click here (to be created)
For our last full rental report click here
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