Rental housing in the UK will continue to go up

Rental prices of residential property in the UK has slowed after nine months of relatively rapid growth. The latest data from real estate Agency “HomeLet” showed that now the average rental prices of residential real estate is 8.5% higher than a year ago. Thus, the average one month rent of a typical property in the UK is now £995 per month . And in London the average price is £1555 per month, despite the fact that rents in London fell for the first time from February 2015. The index from “Homelet” noted that deflation of prices across the country and the growth of the real economy means slower growth in rental prices of residential property in England and Scotland, most likely, a temporary phenomenon. Analysis of rental rates in 12 regions of the UK showed that 9 of the 12 regions, rental prices still continue to rise quite rapidly. The largest growth, at 8.4% recorded in Scotland, and then to 7.7% in East Midlands and 6.6% in London.

In three UK regions recorded a decline in rents compared with the previous year. In the North-West rents fell by 4.64% in East Anglia and 2.2% and in Northern Ireland at 1.4%.

The UK economy is gradually sinking into deflation. Lower prices on consumer goods stimulates the purchasing power amid rising real incomes of the British. An important factor in determining rental prices is the availability and a good selection. If the state of the British economy will be as stable and sustainable, and inflation is the same is low, the lack of new arrivals on the market with an increasing demand will continue to push residential property prices in the UK up.

® Alice Morgan 16.10.2015.

KNIGHTSBRIDGE, LONDON SW1X – £8,750,000

MONTPELIER MEWS, KNIGHTSBRIDGE SW7 – £9,500,000

THE BELVEDERE, CHELSEA HARBOUR SW10

HANS PLACE, KNIGHTSBRIDGE SW1X – £ 14500000

BERNERS STREET, FITZROVIA W1T – £1,995,000

BROMPTON ROAD, KNIGHTSBRIDGE SW3- £1950000

FITZJAMES AVENUE, WEST KENSINGTON W14 – £ 2,300,000

IMPERIAL CRESCENT, IMPERIAL WHARF SW6 – £ 4,550,000

HANS PLACE, KNIGHTSBRIDGE SW1X – £ 14500000