Rental housing in England and Wales is at maximum

The average price for rental property in England and Wales rose to their highs, reaching an unprecedented level of £768 per month despite the fact that now the pace of price growth slowed somewhat.

Rent growth was 1.5% in September 2014, and in August he was at 2.4%. In absolute terms the average rent increased by only £7 pounds a month.

Historically, high rates of rental housing in England and Wales became a natural consequence of the processes of economic recovery and reflect the General inflationary processes, but it is clear that the rising cost of rents for residential property in England and Wales kept pace with wage growth.

Traditionally, autumn is a difficult period for the market rent of residential property. And this autumn is no exception. The market seems to have peaked and is now in a period of slight cooling. Therefore, this period may be favourable for tenants, allowing them to conclude a bargain.

According to forecasts of the National Association of Landlords, in the future, too, we should not expect a strong increase of rates on the housing rental market. Before the end of 2014 is expected to slow price growth, and for the next 12 months average rent growth will be just 1.8% , which is much less than the rate of inflation.

The trend of the market in the coming year will be a redistribution of demand for rental outside of London and South of England. Rental prices of housing in London has grown by about 8% since the beginning of the year, but now the pace of growth in rents has slowed considerably, and make up perhaps a quarter of their value since the beginning of the year.

Outside London in five of the ten regions of England and Wales the price of a rental residential property higher than a year ago. Historically low interest rates and good demand from tenants has led to the fact that now homeowners in the UK can extract a solid stable income from the rent. The increase in interest rates by the Bank of England will only benefit them, because their income will only increase.

In addition, homeowners will benefit from improved labor market. The labor market and the rental market – two things are interrelated. Good choice on the labour market allows tenants to be flexible when choosing jobs, and a stable work enables him to pay good money for your comfort.

Over the last 5 years in Britain there was a real decline in incomes. Many families still recovering from the financial burden that fell on them as a result of the financial crisis. The labor market recovery is slow, but it is obvious that it takes place all over the UK, and the most difficult period is over.

® Maxim Savitsky G. 20.10.2014

Farmhouse in the National Park of Wales – £560000

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More than 120% in two years have earned our customers