Homelet’s recently released rental index shows UK rental prices have fallen in May for the first time since 2009. The biggest regional fall was London with a 3% drop.
Martin Totty, CEO of Homelet, said “May 2017 saw average rents nationally fall for the first time in eight years when the economy had suffered the shock of the financial crisis. HomeLet data suggests landlords are now facing a difficult balancing act between ensuring rents are affordable for tenants in a low real wage growth environment whilst covering their own rising costs.
Tenants will still need a vibrant and growing rented sector to provide them with property options at the time of their choosing. Any constraint to the supply of rental properties, because landlords are unable to achieve the reasonable returns they require, cannot be in the long term best interests of tenants, especially if, as we’ve now heard from all the main political parties, the UK’s population continues to grow.”
Despite this blip the evidence across the board does show that long term increase in demand for rental homes combined with the attacks on Landlords reducing supply means that all things being equal the upward trend in rental prices is likely to continue.
However, we will have to wait and see what effect Brexit will have, especially in the London area.