Rents rise as housing market confidence wanes

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by Gill Montia

The Association of Retail Letting Agents (ARLA) has reported that UK landlords are benefiting from the slowdown in the UK housing market because first-time buyers are reluctant to make a first purchase.

Over the past three months, average monthly rent has risen from £931 to £981.

In the case of houses, rents increased 4% during the period, while for flats rents rose by an average of 2%.

Properties in prime central London locations experienced the highest rate of growth, at 9%.

Ian Potter, ARLA head of operations, says: “Whenever property prices soften or fall, rental demand, rents and yields all increase. As we begin a year of uncertainty in the sales market, it is inevitable that our member letting agents should report that they have more tenants than properties available for them.”

Meanwhile, the Residential Landlords’ Association (RLA) is expecting buy-to-let investors to be on the lookout for bargains, despite concerns about the medium-term future of the housing market and tighter lending conditions.

Les Dribben, chairman of the RLA says: “Experienced landlords will always buy if they consider they are getting value for money.”