UK rental prices 'set to rise'
9th May 2012
There is set to be a further rise in UK rental prices in the weeks and months ahead, it has been predicted, which may result in people considering moving to other areas.
UK property expert James Davis said he "strongly believes" that rental values will continue to increase in the UK and does not see a reason why the situation will change, on the back of the fact that there are still limitations on stock.
"There are more landlords coming into the space at the moment and there is an increasing quantity of tenants who don't have the deposits to purchase a property or just can't get a mortgage, which will put even more pressure on the rental sector," he explained.
Mr Davis added that, rather than this resulting in rents evening out, some tenants may have to move to their second choice area, at least for the time being until rental costs fall.
He explained that tenants who would like to live in West Hempstead, for example, would have to move to Cricklewood or Kilburn.
His comments followed the publication of a new report showing that households are spending an average 38 per cent of their take-home income on rent, with those in London shelling out 71 per cent.
The average asking price for renting in the UK is now £868 per month – one per cent up on the same time last year - but below the record high of £890 in September 2011.
Posted by Staff Writer: Robin Stenson
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