For the first time ever, average rents in England and Wales have bucked the trend and risen during January. In previous years, figures compiled at the end of January have normally shown a drop in the post Christmas period, but this year, thanks to an ever-increasing demand for rental accommodation, rents rose across all regions except two: Wales and the North East of England.
If you are a landlord like me, you may already be aware of the increasing demand for your properties—perhaps you have a waiting list for properties in especially desirable areas?
Well it is certainly true to say that in some areas, demand for rental properties is far outstripping supply, which in turn is fuelling the increase in average rent prices. In London, for example, rents have been rising for almost thirteen months solid and figures for January show that the average rent in London increased by 0.8%. However, although London saw the biggest rent increases during 2011, it was not top of the list for January 2012. Interestingly, the West Midlands and the South West saw the biggest increases in average rents in January—1.8% and 1.5%.
What lies beneath the sudden surge in prices straight after Christmas (traditionally a time when most tenants tend to stay put rather than move)?
According to experts in the rental market, there are several reasons why demand for buy to let property is continuing to rise, thus pushing rents up. Firstly mortgage lending is still very low and more people are choosing to rent rather than buy, and secondly, the economy remains weak and a lack of jobs is sustaining the demand for rental homes.
