Rents stall in June
Published by Sarah Ashcroft
Landlords across the UK saw their rental income stall last month, with June 2013 failing to live up to a trend of positivity set across several preceding years.
New figures from LSL Property Services show rents stalled in June, while the average for this month in the years since 2008 has been a rise of 0.8 per cent. Instead, in London for instance, rents increased by just £1in the month, while tenants in Wales actually found themselves saving money, with the fees set by their landlords falling by £11.
There was also a decline in the number of new tenants, with 0.8 per cent fewer people signing up to rent a home in comparison with May. However, there was a more positive annual result, with the number of new tenants climbing 3.5 per cent from June 2012.
David Newnes, director of LSL Property Services, painted a positive long-term picture, stating: "In the longer-term, the number who can afford to buy a first home will be limited by some fundamental constraints - earnings, and the building of new homes. That's why we expect average rents to at least match wider inflation in the coming years."
The company's statistics also showed there has been a small hike in the number of tenants in financial trouble. This is summed up by the fact that the proportion of individuals with all rent in arrears was up by 0.1 per cent in June.
A landlord in England and Wales can expect an average rent of £737, which is exactly the same as it was in May. Despite the monthly stalling, rents are still 2.6 per cent higher than they were in June last year.
Such figures could be of great interest to would-be landlords when it comes to potentially investing in a home to rent out, as making sure the expected income will cover the likely costs is a must for all those Britons with a property portfolio to their name.
Published on: July 22, 2013
Did you like this article? Share it!