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According to Homelet’s latest index, rents dropped a touch in October but were still 4.2% higher than they were at the same time last year.
In London, the average is now a massive 23% higher than that of October 2009, and 8.8% higher than last year.
The drop in prices wasn’t constant throughout the UK, along with London, the North West, West Midlands and South East have seen rises every month this year.
John Boyle, MD of Homelet believes this to be a seasonal shift- “In October 2010 we saw a very similar 2.4% decrease in rents when compared to September 2010. If rents follow historic trends, many areas of the UK will see only marginal changes in rental values until July 2012.”
Homelet have also found the average number of tenants per household has risen steadily through the year. The average in London is 2 per property while the rest of the UK sits at just over 1.5.
Scotland bucks the trend of the rest of the UK, tenants sharing dropped as well as the average rent price. Scotland also saw the lowest average rent, a property now is rented for an average of £547pcm .
John Boyle sees these changes a marked shift in the PRS- “With rents rising at a faster rate than incomes, and with high levels of inflation, it’s certainly not just tenants in London who are feeling the pinch. With house prices remaining unaffordable for many, the demand for rented property in prime locations across the UK will remain high. Whether it’s through choice or because they simply can’t afford to buy, an increasing number of people are looking to the PRS for a long-term home. We’re seeing a shift in the UK housing market.
This latest set of data again reiterates why the PRS will continue to grow in the future, and the reality of the term ‘Generation Rent’.”
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