New Figures Confirm What We Already Know

New figures have confirmed something we have been discussing on this blog for a while; there is a glut in the rental market caused by home sellers unwilling to accept the dire low prices on offer.

This clearly has a knock on effect as the glut of properties forces the rental prices lower and lower in line with the law of supply and demand.

The Findaproperty.com Rental Index reports that a surge in supply has pushed UK rental asking prices down by 1.2% over the month and 4.8% over the year.

It is interesting to note that this effect is worse in areas that rely on City workers for their rental demand. These areas experience very high rental price falls with drops of up to 11.7% which in real terms works out to £220 a month.

Places where the rent was not so high in the first place are managing to resist the trend more robustly.

Even though extra demand is being seen in some areas of the rental sector due to people losing their homes, it is not enough to re-dress the balance.

It is reported that some landlords are offering incentives to tenants such as satellite TV or weekly cleaners to try to tip the balance in their favour.

In current times, it is important for landlords to try and offer whatever incentives they can to make sure that their properties remain let and tenants continue to pay the rents.

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