Three Times an Increase for Rental Rates
The latest figures from FindaProperty.com have revealed that renting costs in the UK have seen an increase for the third consecutive quarter.
According to the monthly Rental Index compiled by the site, the cost of renting grew by 2.3 per cent over the last three months. This was the third quarter that an increase had been recorded.
The overall annual change in the cost of renting has now increased for the first time since January 2008, when the Rental Index was first compiled. Despite the year-on-year increase of 1.9 per cent, the average cost is still lower than the all-time high cost of renting in Q1 2008. By comparison, renting is on average currently £34 per month or 3.9 per cent lower.
The increase in the cost of renting has been attributed to the lack of available properties on the market combined with a surge in the number of people looking to rent due to the current market conditions making it more difficult to buy a property. The current number of available rental properties is at its lowest since October 2008.
Nigel Lewis, property expert at FindaProperty.com, told PRWeb.com: "The new budget may lead many to consider delaying their first steps on to the property ladder and, as more people rent, this will put more pressure on the lettings sector. A small number of properties came on the market during the second quarter but overall stock levels are still down. Demand is likely to outstrip supply for a while yet and rents will keep being pushed up as a result."
Property Investment news posted by Philip on 05 July 2010
