Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
About 4 weeks ago 48
The latest Homelet index found average rent prices dropped last month, only the second time it’s dropped in successive months this year.
Across the country prices fluctuated, some regions saw big price drops while the regions where prices rose only did so slightly, accounting for the drop. East Anglia saw the biggest drop, dropping back under the £700 mark to £659.
Rent prices have gone up by 8% since the turn of the year.
Nationwide, tenant incomes dropped when compared to September last year by 3%, although Scotland’s renters average wage has gone up 9% while their rent prices only marginally increased.
London continues to defy the rest of the country as it continued its rise; £4 was added in September taking the average rent to £1,206. Over a 12-month period this amounts to nearly 10%, the average wage of London tenants only rose by half that figure though.
Talking of London, Homelet MD said, “Rents in London only increased by 0.33% this month. This may not seem significant, but it’s out of character with the dip in rents we normally see in the capital at this time of year. This increase widens the growing gap between rental prices in Greater London and the UK average. Back in September 2009 rents in London were less than 40% higher than the national average. Sadly for tenants living in the capital the data indicates that rents are rising at a much higher rate than incomes. With high levels of inflation and less disposable income, this could cause some tenants to look outside the capital for rented accommodation.”
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