In June 2017, rental costs in the UK fell by 0.3% compared to June 2016.* It’s the second consecutive month that prices have fallen, with rents lower in May 2017 than May 2016 which was the first annual fall in rents since December 2009. So what is going on?
The general consensus by property websites, tenant deposit schemes and financial folk in the know is that the current ‘economic climate’ is to blame. In other words, everything is so up in the air with the UK’s economy, rents are reflecting that, and there is no way to accurately predict if the trend is going to continue.
The reason it’s hard to guess what’s going to happen, is that on paper it shouldn’t be happening! The demand for property still outstrips supply. But people’s pockets aren’t as deep as they were this time last year. Landlords have to take into consideration what people can afford, and they are adjusting their rents accordingly.
This is just speculation as to the cause of the trend. To predict if it’s going to continue, we take a look at the Capital. Usually, what happens in London’s property market, happens a few weeks or months’ later across the rest of the country, and the city is currently experiencing its third consecutive month of rental prices dropping. It also experienced a 2.6% reduction in new tenancies in June.
So it’s good news if you’re looking for a new rental property in 2017 as rents are unlikely to rise anytime soon. Take a look at our local properties and get in touch if you need help finding your next home.