Lease of residential property in the UK continues to rise

The rental market of residential property in the UK is at an eleven-year peak. High demand has led to higher rents, average levels of residential property in the UK has reached £751 per month.

New figures on rents continue to break records, monthly trends show an increase up to 6 %.

Softened a bit the situation with rents in London, where, perhaps, the rental prices of residential properties reached a maximum value. Last month in London showed no monthly growth and annual growth reached 5%, thus the average monthly rental value for residential property in London is now £1437.

Activity levels in the rental market are unprecedented and today is not planned no signs of slowing down growth.

New leases are at record high prices, allowing the market to understand in which range will expand corridor of price.

The number of applications for mortgage loans to surrender your property (buytolet) continues to grow at 27 % per year. This contributed to the high competitive environment among lenders which arose after the government began to pour money into the industry, stimulating the construction industry of various government programs. The news that the Bank of England proposed to hold interest rates for another three years led to the fact that the depositors having Deposit in the Bank will be looking for a different way of investing their funds. This circumstance brings to the rental market even more players.

Today, the demand for rentals far exceeds supply, thus pushing rental prices of real estate up by about 2 percent per month.

In London the balance between supply and demand tends to smoothing – the number of new applications, the demand increased by 5%, and the number of new properties in London coming onto the market increased by 8%.

And international and domestic investors were attracted by the growth of assets in the capital and high yield, which led to unprecedented growth in rental prices.

Analysts predict that such a traditionally high market activity observed until October, but are afraid to give accurate predictions.

® Alice Morgan 20.08.2013