Property consultant Tony Freeman looks at the recent news that residential rents have fallen for the first time in six years.14th March 2017
Estate Agents Countrywide have today (14th March) released figures revealing a drop in rent for the first time in six years.
The figures, which relate to London-centric properties, appears to be down to supply outweighing demand for the first time in six years.
With the rest of the country’s residential rental costs increasing, it seems the trend for London is declining rent.
This does seem to contradict the recent results from the Office for National Statistics (ONS). Its latest figures, for the year to January 2017, showed that rents for private tenants across the UK had risen by 2.2%.
The ONS said at the time that inflation in the rental market was creating excess demand – this is the complete opposite to what Countrywide are saying.
Countrywide reported that across Britain there had been a 5% rise in the number of people looking for homes to rent during the past year, but in London, and the south east of England, the number of would-be tenants had dropped, down by 3% and 5% respectively.
There does seem to be some disparity between the two results but it is an unprecedented time with Brexit on the horizon and a weak pound, there will no doubt be an unsettled period for all areas of property rental.
11th September 2017Read more