No signs yet of rents sliding during the Coronavirus crisis as many areas experience RISES

admin    Uncategorized     agents

Research by lettings platform Homelet reveals extraordinary resilience within the rental market despite the lockdown.

Rents are holding up well around the UK
despite the market uncertainty created by Coronavirus, with some regions
showing hefty year-on-year increases.

Average rents for new
tenancies rose by 2.7% last
month to £959 compared with
May 2019, according to the latest Homelet Rental Index figures.

But rents in the capital
dropped by 0.2% in May compared
to the previous year; the average London rent now stands at £1,598 a month – 67% higher than the rest of the
UK.

Homelet reveals that rents rose in the last year in 10 out of 12 of the regions, with the North West seeing the largest annual change, up 7.5% to £758, followed by Wales, up 5.7% to £613.

Price movement

Chief
executive Martin Totty says the mixed findings are not easy to explain, which
makes it hard to predict rental price movement in the next few months.

“Rents may go up or they may go down and
defaults may follow the same pattern. Nobody can be sure other than there is
one certainty…and that is there is now more uncertainty.” 

“It’s surprising that in
many regions of the country, especially away from London and the South East,
rents have generally held up well month on month and are commonly ahead over
the year.

“Not so surprising is
evidence of a softening in rents in the short term in the higher average rent
regions and, for the first time in almost three years, a negative movement in
London compared with a year ago.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – No signs yet of rents sliding during the Coronavirus crisis as many areas experience RISES | LandlordZONE.

View Full Article: No signs yet of rents sliding during the Coronavirus crisis as many areas experience RISES

If you enjoyed this article please consider sharing it!