Rental costs in UK record first fall for ten months

Friday, 16 December 2011 09:55

Property rental costs in the UK have fallen for the first time in ten months, according to the latest research by LSL Property Services.

Renting costs dropped from their record high of October by 0.4 per cent to £717 a month. This is still 3.5 per cent or £25 higher than the average rental cost in November 2010.

There were regional variations in the cost of renting with the largest increase in Yorkshire and Wales. London and the West Midlands also posted increases but the East Midlands recorded the sharpest drop in rental costs where rents fell by 2.2 per cent.

LSL director, David Newnes said: "Following their relentless march upward throughout the year, rent rises have taken a pause for breath. Landlords are looking to avoid having properties vacant over the Christmas period, and can be less aggressive with pricing as tenant activity slows in the run-up to the new-year."

Mr Newnes said that it was common for rental costs to fall at this time of year but that he expected them to continue to rise in the early part of 2012.

The research also revealed that there has been a drop in the number of tenants behind on their rent. Mr Newnes said this was because “of a changed tenant mix’ that means many tenants with good credit are renting because they are unable to secure a large enough deposit to take their first steps on the housing ladder.

Rents increased in every region in the UK in 2011. The smallest annual increase of 0.3 per cent was seen in the north-east and the largest annual increase was recorded in London and the south-east at 4.2 per cent.

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