London saw average advertised residential property rents increase for the first time in four months, up by 0.26% between week two and week four in April, new data shows. The average advertised rental price stands at around £2,182 per month in the capital with further improvements expected, says the report from Move with Us.
The firm says that increases in the London rental market are significant as it is a key determinant of the national average and has recently performed poorly. Average advertised rents in the UK currently stand at around £966 per month, following a 0.49% fall in April. However, the data shows that last month was the fourth month of relative stability in the rental market with rents changing by no more than 1% between December 2012 and April 2013. This stability is also reflected regionally with average advertised rents changing by less than 1% in all but two regions.
The North East and East Anglia saw advertised rents increase with East Anglia continuing on a steady path of price growth with an increase of 0.13%. The North East, on the other hand, appears to have recovered from a four month fall in rents with a 2.02% increase in the latter part of April. The total increase for the month in the region was 0.16%, as prices fell by 1.86% in the first two weeks.
Quote from PropertyCommunity.com : “I’m pretty new to anything related to real estate and property investment so I really could need some help I’m moving to a bigger flat in London and don’t really know what to do with my old flat. Should I sell it or let it for rent? Is it a good idea to keep properties at the time or sell them? The flat is located in London Islington and has about 50 square meters.”
Most regions saw average rental prices fall this month though the majority of these decreases were less than 1%. Wales saw the most significant decline with the average price falling by £22 in April to £638 per month. Average advertised rents also reported falls of 1.51% in the East Midlands reaching a low of £623 per month. In both regions these decreases continue a sustained trend of falling prices that started in December 2012.
Overall, it appears that average advertised rents in Great Britain will continue to fall, though a possible recovery in the London rental market could push average rents up in the coming months. ‘Overall, average advertised rents have not changed by a large amount. However, there are several regions such as Greater London and East Anglia that could potentially see continued upward changes in advertised rental prices by the end of the quarter,’ said Robin King, director of Move with Us.
‘However, recent data has demonstrated that the residential sales market is improving and media reports show that mortgages are more readily available which is likely to be bolstered by the government’s new Help to Buy scheme. These factors mean it is likely we will see an adjustment in the rental market and a move away from renting as purchasing property becomes more accessible,’ he added.