Wednesday, August 21, 2013
Renters 1 – Landlords 0
Rents rise slower than inflation as tenants opt to buy
Why buy an overprices asset when you can rent one cheaper? The average monthly rent in England and Wales increased 1.8pc in the year to July, slower than CPI inflation of 2.8pc and slower than house price inflation. Seven regions out of ten saw rents rise in the last 12 months. By far the most rapid of these increases was in London at 5.7pc. LSL says although this has brought rents in the capital to a fresh record, the pace of annual rises has slowed. his week, credit referencing agency Experian published research that suggests tenants - where they can afford to - are leaving the rented sector and buying property. This risks causing a glut in the rental space, with the number of properties advertised to let increasing sharply between April and June.
Posted by khards @ 01:53 PM (2735 views)
3 thoughts on “Renters 1 – Landlords 0”
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mark wadsworth says:
I think this is a good sign.
Back in 2008 when it looked as if there would finally be a crash, the normal ratio of sales to lettings adverts in the free estate agents’ magazines flipped over from being mainly sales with a few lettings at the back to being more than half lettings with just a few sales.
stillthinking says:
Rents should surely be compared to wages not CPI and compared to wages, rents are rising.
khards says:
The new influx of BTL could be viewed as a good thing since whenever I have rented a ‘new’ BTL property everything seems to be working and it has been freshly decorated.
So in effect you could be renting a nicely refurbed property for a good price vs buying a shitty property for an expensive price. Add in stamp duty solicitors etc and you could be quids in.
In 2018 ( a while off) all BTL will have to be a minimum energy efficiency rating too.