Property experts recommend that average rents should be tracked from the current highs and lows of the market rather than measuring on a year by year basis. From a tenant’s perspective it is currently a good time to rent as since the September 2008 height of £709, rents slipped to a low of £674 in July 2009, a fall of 5%, and rose to £697 in 2010. The average rent for 2012 is around £683 per month. This suggests that rents are still low by nearly 3.5% versus the higher rent from four and a half years ago. However, it is interesting to learn that according to a leading lettings agent, quarterly average rents in the UK improved from £681 to £727, suggesting a 7% rise in rents this year as yet.
From a landlord’s perspective, it is imperative to track rents over time, more so if they are letting property to create extra income for retirement. Landlords need to find ways to increase their rents in line with inflation, and they can seek guidance for this from their local lettings agents. Rantals London says, “Local lettings agents come very handy when the landlords want to know about various ways of keeping up with inflation and useful techniques to keep the rent on a favourable side.”
What is important is that although in the long term rents tend to keep up with inflation, since the credit crunch they haven’t been able to do so and rents, on average, are 3.5% lower as compared to figures in 2008, despite inflation running at over 3% per year.
Novices seeking rental property should secure a property at the earliest and maintain a good rental record to be able to stay in the property without having to pay higher rents for the next six to twelve months. This makes it easier for the tenant to move another property, considering their sound and proven track record of paying rent regularly.